Friday, August 3, 2007

Bad Economic Numbers Foretell Bad Times A-Coming


This morning’s employment report revealed an increasing jobless rate and slowed employment growth … signs of the economy reacting to the slowing housing market and fallout from the collapse of subprime lending.
Nonfarm payrolls increased just 92,000 in July, far below “expectations.” The unemployment rate, as calculated by government quants and faithfully repeated by Maria Bartiromo, ticked up a tenth of a percent, to 4.6%.
Also of interest, U.S. manufacturing employment dropped again -- its 13th month in a row. Domestic manufacturers have not hired more workers than the previous month since June 2006.

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