That's 25,000 fewer jobs than forecasters had expected. As Wharton's Justin Wolfers put it, "The strongest part of the U.S. economy appears to be the [economic forecast] revision sector."
Leveraged companies that are highly sensitive to the U.S. economy such as Bank of America
The biggest drag on the economy continues to be falling government investment. Lower federal government spending subtracted nearly half a percentage point of GDP this month, largely due to the military drawdown that wasn't offset by new federal spending. Meanwhile, state and local government declines cost another 0.14 points to GDP from lack of highway investment. Nearly every sector of the economy added jobs this month, except for employment in transit and passenger transportation.
This is the second month in a row of mediocre jobs reports, following a strong several months of 200,000-plus job gains. But following a market run-up driven by strong economic performance, investors are getting jittery about this leg of the recovery.
The report is eerily reminiscent of the last two summers, which saw economic slowdowns dashing the hopes of those who thought a full-steam recovery was building. It's another reminder that at a time of weak household spending despite record-low interest rates, the recovery continues to remain shaky as long as U.S. and European governments continue to cut.
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