Hiring decelerated to the slowest pace in two years as sectors including business services and education and health shed jobs, pointing to a weakened demand for workers.
The U.S. economy has contracted over the past six weeks as hiring has slowed and consumers and businesses worried about tariff-related price increases, according to a Federal Reserve report.
-- NBC News (@nbcnews.com) June 4, 2025 at 4:45 PM
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Related ...
US service sector unexpectedly contracts in May; inflation heats up
www.reuters.com
... Summary
- - - ISM nonmanufacturing PMI drops to 49.9, indicating contraction and lowest since June 2024
- - - Tariff uncertainty complicates business planning, affects financial guidance
- - - Supply chain bottlenecks and tariffs drive inflation concerns
The U.S. services sector contracted for the first time in nearly a year in May while businesses paid higher prices for inputs, a reminder that the economy remained in danger of experiencing a period of very slow growth and high inflation.
The Institute for Supply Management (ISM) said on Wednesday its nonmanufacturing purchasing managers index (PMI) dropped to 49.9 last month, the first decline below the 50 mark and lowest reading since June 2024, from 51.6 in April. ...
Related ...
Fed Beige Book' economic report cites declining growth, rising prices and slow hiring
www.cnbc.com
... Key Points
- - - The U.S. economy contracted over the past six weeks as hiring slowed and consumers and businesses worried about tariff-related price increases, the Fed reported.
- - - On inflation, the report described prices as rising "at a moderate pace and " widespread reports of contacts expecting costs and prices to rise at a faster rate going forward."
- - - Regionally, Boston, New York and Philadelphia all reported declining economic activity. Richmond, Atlanta and Chicago were among the districts reporting better growth. ...
For some reason this song popped up into my mind ...
Aretha Franklin - Someday We'll All Be Free (1992)
www.youtube.com
Lyrics excerpt ...
...
Free
Hang on to the world as it spins around
Just don't let the spin get you down
Things are moving fast
Hold on tight and you will last
Keep your self-respect and your woman and manly pride
Get yourself in gear, keep your stride
Never mind your fears
Never mind 'em, never mind
Brighter days will soon be here
...
Sam Cooke - Chain Gang (1960)
www.youtube.com
Lyrics excerpt ...
...
All day long they work so hard
Till the sun is going down
Working on the highways and byways
And wearing, wearing a frown
You hear them moaning their lives away
...
#40
You really should let Grok write your posts.
At least it's coherent.
That word salad is garbage.
"The housing bubble preceding the crisis was financed with mortgage-backed securities (MBSes) and collateralized debt obligations (CDOs), which initially offered higher interest rates (i.e. better returns) than government securities, along with attractive risk ratings from rating agencies. Despite being highly rated, most of these financial instruments were made up of high-risk subprime mortgages." en.m.wikipedia.org
Borrowers couldn't have done any of that.
The financial houses created those financial instruments, not the borrowers.
@#73 ... Companies importing goods in March to stock up before the tariffs hit. ...
How big trade deficit drop as tariffs hit imports is playing out inside U.S. supply chain and economy
www.cnbc.com
... The U.S. trade deficit fell by the largest amount on record in April as imports fell by over 16% after a surge in orders to beat President Trump's tariffs, but there's a worrying flip side for the consumer. As the trade war whipsaws global economic activity, supply chain data shows that the retail inventory crunch could be next and small business across the country are bearing the brunt of the pain. From freight orders to inventory and warehousing, the latest logistics data shows the inability of many importers to make business decisions related to inventory levels.
One closely watched data point is the widening gap between inventory levels and inventory costs. These metrics generally track together, according to the Logistics Managers' Index. In 2024, the average space between these metrics was 12.1 points. But in May 2025, the gap has expanded to 26.8 points, the third-highest in the history of the index, said Zachary Rogers, associate professor of supply chain management and Colorado State University Supply Chain Management Forum director.
When inventories are high and quickly expand, warehouses cost more. Traditionally, when warehouse inventories decrease, warehouse costs slow down as well. But because of the front-loading of products ahead of the tariffs in the January-March period, inventory is flat, with replenishment orders not coming in. But costs are still up because the inventory is being held longer. ...
Good grapic in that article, "The spread between inventory costs and inventory levels is the highest its been since the pandemic," which see...
@#71 ... "though it has been outpacing declining inflation" ...
Yup. Wage growth has been outpacing inflation. That's A Good Thing.
US Employment on Solid Footing Before Tariff Bite
mp.morningstar.com
... Key Takeaways
- - - US nonfarm payrolls increased by 139,000 in May, modestly above the 126,000 estimate, but down from April's 147,000.
- - - The unemployment rate held steady at 4.2%, matching April and reflecting a narrow range since May 2024.
- - - Average hourly earnings rose by 0.4% for the month and 3.9% yearoveryear, slightly above expectations.
- - - Fed futures now imply negligible odds of a June rate cut and have shifted the first expected cut to September (over 90% probability), reflecting a more resilient labor market.
The Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment rose by 139,000 in May 2025, slightly exceeding consensus expectations of 126,000 and marking a slowdown from April's revised gain of 147,000. The unemployment rate remained unchanged at 4.2%, highlighting the continued tightness in the labor market. Wage growth continued to outpace inflation, with average hourly earnings rising 0.4% over the month, and 3.9% yearoveryear, slightly stronger than forecasts.
However, revisions trimmed prior months' gains: March's figure was lowered by 65,000 (from 185,000 to 120,000) and April's by 30,000 (from 177,000 to 147,000).
Together, those cuts reduce the prior two-month payroll tallies by 95,000 jobs.
After factoring in these adjustments, the three-month average has fallen to 135,000 and the 12-month average now sits at 124,000 -- the lowest 12-month average since early 2023. ...
Good chart in the article showing monthly job creation since January 2023.
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