Wainwright Marks Management - US Economy in Good Shape
February 06, 2019 (PRLEAP.COM) Business NewsA strong January jobs report for the US indicated that US companies are still hiring at a rapid pace in spite of a slew of global economic risks. The many factors which seem to be slowing economic growth throughout the rest of the world and causing analysts at Wainwright Marks Management to warn about the risk of a possible US recession seem to have done little to deter US employers.
Economic growth has faltered across the globe, led by a marked cooling in China's economy and hindered by the possibility of a no-deal Brexit. The US Sino trade war and recession in Italy pose strong threats to growth in the Eurozone but the US economy has entered its tenth year of growth.
Last month, the US Labor Department reported an increase in jobs of 304,000 which was the biggest increase in 12 months. Although the rate of unemployment went up slightly due to federal workers who were temporarily out of work due to the partial government shutdown, Wainwright Marks Management analysts say this should rectify itself during the course of February.
While US President Donald Trump's economic policies continue to attract widespread criticism, the US reported that activity in the manufacturing sector had also picked up in January. This increase contrasted sharply with the sluggish economic momentum seen in China and Europe.
The Federal Reserve decided to press pause on its interest rate hiking cycle after increasing the benchmark interest rate 4 times during the course of 2018 and hold its rate steady this week. Wainwright Marks Management analysts say the Fed may hold off on any further interest rate hikes for the rest of 2019.