Backed by a revised GDP growth in the second quarter of 4.2%, the economy has grown at a pace not seen since the third quarter of 2014. In addition, the latest employment data reveals a robust job market amid the backdrop of an extended bull run in the capital markets despite private payrolls missing its expectations–companies added 163,000 jobs in August, which represents a tangible slowdown versus the 217,000 added in the previous month and below the average of 206,000 a month.
Additionally, the month of August revealed a steep decline in hiring by small businesses, but in spite of this, the labor market continues to thrive. Furthermore, this sentiment is paired with an unemployment rate that continues to be at historically low levels.
In conjunction with the jobs data, the Institute for Supply Management released a report that revealed a growth increase in U.S. service sector activity–a pace that was higher than expected in the month of August. According to the ISM, its non-manufacturing index jumped to 58.5 during the month of August–about three points higher than the previous month.
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