U.S. labor market tightening; mid-Atlantic manufacturing cools

 WASHINGTON -On Thursday, June 21, 2018- A few Americans filing a form for unemployment benefits unexpectedly fell down till the end of last week. Other data have also presented that moderation in factory activity in the mid-Atlantic region in June amid a decline in new orders.

An economist of Moody’s Analytics in West Chester, Maria Cosma, in Pennsylvania said, “The U.S. labor market is tightening, though unemployment benefits claims are not a perfect measure of layoffs, they highlight the strength of the labor market and suggest the unemployment rate has nowhere to go but lower.”

“There may be some headwinds forming,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. “There is a lot of chaos in Washington that is causing optimism to moderate.” Firms were less upbeat about business prospects over the next six months, with measures for new orders and employment declining. Manufacturers, however, expect to boost capital expenditures in the next six months.

Economists expected to get hired to fall down in the expected months as employers increasingly report labor shortages across all sectors of the economy.

Economists speculated the ebb in business conditions was the result of escalating tensions between the United States and its trade partners, including Canada, Mexico, and the European Union. The Trump administration has slapped tariffs on steel and aluminum imports to shield domestic industries from what it says is unfair competition. Washington also plans to impose duties on a range of Chinese imports next month.

by Sawan Kumar on June 22, 2018

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