Friday, July 3, 2020

$5 Million Jobs in June and Improved Economic Activity (Short and Longer Term)

Unemployment is at 11% and we have a 2% drop of unemployment within the month to show that the economy is starting to come back to life. It looks like manufacturing is going to start coming together as 350K increase in manufacturing jobs. $700K+ jobs for African American and $1.5 for Hispanic workers over the past 2 months. Approximately 80% have opened and new business applications have doubled. ISM rose 10% with new orders 25%. Consumer Confidence is risen 12 points and job expectations are at a high.

Those are the statistics that have presented. As the economy moves back to opening we will likely find new influence of money in terms of investments, consumer spending, housing boosts and a few other sectors like manufacturing and tourism. There has been a shift in a few of the economic assumptions and as with change there is a little time to come up but it can push the economic system a little higher than it was before. As we move into more virtual type work we often find increases in productivity and innovation just like we have over the past 20+ years. However, in this case it might come faster because we paused economic activity and then start to open the spigots in way we never had to see in society. We should start seeing a boost in economic activity until it levels off and then another boost perhaps when company investments start to turn functional a few years down the road.

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