U.S. non-agricultural employment increased by 559,000 in May, unemployment rate hit a new low since March last year

Original title: U.S. non-agricultural employment increased by 559,000 in May

Summary

[Data]The number of non-agricultural employment in the United States increased by 559,000 in May, which is estimated to increase by 674,000, and the previous value increased by 266,000. The US unemployment rate in May was 5.8%, the lowest since March last year, estimated at 5.9%, compared with the previous value of 6.1%. (Interface News)

The number of non-agricultural employment in the United States increased by 559,000 in May, which is estimated to increase by 674,000. The previous value was an increase of 266,000. The US unemployment rate in May was 5.8%, the lowest since March last year, estimated at 5.9%, compared with the previous value of 6.1%.

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The Fed’s Beige Book recognizes inflationary pressures, the US economy maintains a “moderate recovery”

In the early morning of June 3, Beijing time,MidlandThe Chu released the latest issue of the Beige Book (Summary of the Domestic Economic Situation). The description of overall economic activity in the United States maintains a “moderate recovery”, and the growth rate is slightly higher than the previous reporting period. In April, the Beige Book improved from a “slight recovery” to a “moderate recovery”.

According to the Beige Book, according to the comments of the 12 regional Feds on the current economic situation, the US economy continued to expand at a moderate rate from the beginning of April to the end of May, but the growth rate was faster than in the previous reporting period. Many regions mentioned the positive impact of vaccination rates and the lifting of economic blockade measures, as well as the negative impact of supply chain disruption. He also pointed out that the impact of increased vaccination rates may be the most significant in increasing consumer spending, especially in the areas of leisure travel and catering, and it has also played a role in enhancing other sustained recovery spending projects. Car consumption that has received much attention remains strong, but is often restricted by tight inventories.

In the manufacturing sector, factory output continues to increase in the context of supply chain challenges, but manufacturers also report that widespread shortages of materials and labor, and superimposed transportation delays make it more difficult to deliver products to consumers.The same problem also appeared in the construction industry, and the builders expressed lowinterest rateThe strong demand brought by them exceeded their construction capabilities. In the field of professional and commercial services, the market demand for transportation services is extremely strong.

In terms of labor market and wages, about two-thirds of the regions reported a small increase in employment, while the remaining regions reported moderate growth.

The Beige Book pointed out that as the epidemic has spread and cooled, employment growth in food services, hotels, and retail has been the strongest. Many companies still find it difficult to hire new people, especially low-wage hourly workers, truck drivers and skilled traders. Regional business contacts are widely expected to maintain strong labor demand in the coming months, but supply is limited. The lack of job seekers will hinder some companies from increasing production and even being forced to reduce business hours.

In terms of the evaluation of “prices” that investors are most concerned about,MidlandThe Chu Bei Book acknowledged that “the overall price pressure has further increased since the last reporting period”.

The Beige Book shows that overall price pressure has increased since the last report. Sales prices have risen moderately, input costs have risen rapidly and continue to rise across the board. Many business contacts have mentioned that the prices of construction and manufacturing raw materials have risen sharply, and the prices of freight, packaging and petrochemical products have also risen. Continued supply chain disruptions have exacerbated cost pressures. . However, the increased demand has caused some companies, especially manufacturers, builders and transportation companies, to pass on most of the cost increase to customers. Looking ahead, regional business contacts expect that they will face increased costs and higher prices in the coming months.

On the whole, the sample of business contacts extracted from the Beige Book shows little change in the outlook, and still “optimistically believes that economic growth will remain stable.”

According to market analysis, the Beige Book clearly shows inflationary pressures, but it’s hard to imagine that the wording here can be changed.MidlandChu’s thoughts. At present, the Fed still expects that a large number of workers will return to work, and the bottleneck in the supply chain can eventually be relieved. In addition, the Fed also believes that the current price pressure is difficult to sustain. If five months later it is still today, it will be a completely different story.

The financial blog Zerohedge mentioned that the newly released Fed Beige Book pays special attention to the “unprecedented national shortage of supplies” and has been “paniced” so far. This can be seen from the sharp increase in the number of “shortage” keywords mentioned in the report. In its opinion, this shows that the US economy is clearly not “moderate growth”, but signs of overheating. (Source: Xinhua Finance)

(Article Source: Interface News)

(Editor in charge: DF075)