In explaining one of the major strengths of the Red Army, Joseph Stalin once stated that Quantity has a Quality all its own It's a quote that came to mind in analysing Wall Streets reaction to the undoubtedly impressive headline result in last weeks Non-Farm Payroll report, which showed that the US added 288,000 jobs in June, smashing market expectations, and causing the US unemployment rate to drop to just 6.1%. On a side note, U-6 barely moved, and is still sitting at 12.4% But under the hood - things still aren't quite so rosy, with non-existent wage growth (in real terms), and a huge shift from middle to lower income paying jobs Its a good sign that the US economy is winning the 'quantity' battle - but quality of jobs is still a major issue, and until/if won, don't expect much stronger GDP growth. Full report here (including 3 great charts) (VIEW LINK)
Agree James - no arguments there. Though the 'bear' camp got another win with the latest Gallup data re personal spending. Link here http://www.gallup.com/poll/172088/consumer-spending-dips-june.aspx
Good read Jordan and some good charts. I do think that the volume/headline is a good starting point for the US economy. These kinds of results not only reflect the employment numbers but they also flow through to consumer confidence. There is no doubt it has been a grind back from the GFC, however, with the consumer such a big part of the US economy confidence is a big influence and strong headlines are a good place to start.