Last Week’s Job Growth Figures Beat Analyst Expectations

​Last Monday, the Institute for Supply Management released their monthly manufacturing report, showing strong gains, despite industry disruption. On Tuesday, U.S. automakers released their monthly auto sales reports, all showing gains from the year before. Finally, on Friday, the U.S. Department of Labor released the monthly jobs report, which beat analyst expectations on job growth, while unemployment rose slightly.

• The U.S. economy added 213,000 jobs in June, beating analyst expectations for 195,000 new payroll additions. Also, the U.S. unemployment rate rose slightly to 4.0%, after a 3.8% posting in May, the Labor Department report shows. Hundreds of thousands of Americans began looking for jobs as the labor market continued to tighten over the last few months. This new influx of Americans looking for work contributed to the slight rise in unemployment in June. During the first half of 2018, the economy added 215,000 jobs a month on average, the best six-month streak in two years. Wages rose 2.7% from last June, a modest gain compared to pre-recession levels.

• The Institute for Supply Management (ISM) released their monthly manufacturing report on Monday. The ISM reported that its Manufacturing Index for June jumped to 60.2 from 58.7 in May. A reading above 50 indicates expanding manufacturing activity, while a reading below signals contraction. Manufacturing makes up around 12 percent of the economy, according to CNBC. The performance of supplier deliveries was markedly slower in June, rising 6.2 points. Manufacturing employment grew at a slower rate, falling 0.3 points to 56.0. The report shows that demand for manufactured goods is still strong, but disruptions up the supply chain and a short labor supply are beginning to take their effect within the industry.

• A strong economy, low unemployment, and tax cuts have led to continuing growth in auto sales, despite rising interest and a wider selection of late-model used vehicles. June auto sales, as reported by the top automakers, rose throughout June. Ford, GM, Toyota, and Fiat-Chrysler all posted gains in SUV, crossover, and pickup sales, despite a slide in passenger car sales. Based on total car sales from one-year prior, Ford posted a 1.2% gain, Toyota a 3.6% gain, and Fiat-Chrysler an 8% gain, all beating analyst expectations. GM, who reports quarterly sales, had 4.6% sales growth from second-quarter 2017, in line with analyst predictions.