What’s happening with the economy?

Friday’s employment report contained some good news. Not only did the economy create almost 200 thousand jobs last month, but April and May were both revised higher as well, for a total pick-up of some 300 thousand jobs. And the leading elements of the job report were higher as well: temporary jobs went up, hours worked increased, and average hourly earnings were higher. Both the household survey and the establishment report indicate that the job market is getting healthier.

This is important, because the jobs report is the broadest assessment we have of what the economy is doing. Some folks dismiss the report as “old news,” but this data has been collected, reviewed, and analyzed for over 60 years. The report moves markets around the world precisely because it is so reliable.

So most economists expect the Fed to begin to reduce their purchases of government bonds sometime this fall, and eliminate it by the middle of next year. They’re still a long ways from raising rates. But this report makes it look like our national stuck-in-second-gear-economy may finally be shifting into third.

Douglas R. Tengdin, CFA

Chief Investment Officer

By |2013-07-08T10:09:59+00:00July 8th, 2013|Global Market Update|1 Comment

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

One Comment

  1. Dave Stone July 8, 2013 at 4:21 pm - Reply

    You’ve commented before on the job growth before. You’ve highlighted the education and healthcare sectors because they have so much government funding. Any thoughts on the areas all these jobs are being created?

Leave A Comment