Not so long ago data about jobs exceeded all expectations. People learned that there’ll be one more round of negotiations between America and China. As a result, American stocks greatly jumped.
At the last months of this summer there’re plus 195.000 jobs from private employers. That’s 149.000 more than analysts expected. Though fears about future recession are still mounting. The leader is the sector of service-providing. There’re plus 184.000 jobs there. Numbers at the manufacturing sphere make 8.000 places. What concerns the negotiations, China hopes for great progress after them. Dow Jones reports that there’s expectation that finally there’ll be a deal concluded between China and America.
As the Refinitiv reports the unemployment rate is expected to be steady at 3,7%.
Let’s look at the situation at present moment: people still have money and spend it every day. The evidence of this ability is proved by data reports from retail sales and consumer spending data. In general, consumers make more than 2/3 of the world economy. There should be no thoughts about recession untill people are able and willing to spend their money. And what is the main strength of American economy that will keep markets and stability? Certainly, this strength lies in people who spend their money.
If we direct attention to the earnings, then we see that there’re risks that growth is likely to slow in the end of the year. Due to easing of tensions in Hong Kong, the markets have boosted, an extradition bill was withdrawn and violent protests were not long in coming.