Press comment: Trump's 'MAGA' boost to manufacturing jobs has "pretty much reversed"
If you are covering the latest US nonfarm payroll statistics, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors:
“Ultimately these US employment numbers will make the Federal Reserve feel vindicated for their ‘one and done’ interest rate cut earlier this week. This is the second straight month of upward revisions when it comes to payroll statistics, so it is positive to see not all economic data is pointing towards an impending recession. These numbers are particularly good to see given employment has remained robust despite the current strike at General Motors.
“However, the US economy is not out of the woods just yet, as the detail paints a more contrasting picture. The bulk of the gains in the prior three months are in leisure & hospitality, areas that are traditionally less well paid, and sectors such as construction, manufacturing and professional & business services have seen momentum come off sharply. Furthermore the unemployment rate for those wanting to work full-time but currently only finding part-time work ticked up last month, suggesting that firms’ confidence to employ full-time employees has been dented somewhat. These will all be factors to keep an eye on going forward.
“Not only could these statistics weigh on business confidence, but Donald Trump’s ‘Make America Great Again’ boost to manufacturing has pretty much reversed, something that could have serious implications come the election this time next year.”
Notes to Editors:
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