25 May 2017

  |  CBI America

News

U.S. Economic Update, May 2017

After slower job growth in March, the number of jobs added to the economy bounced back in April and unemployment hit a near-10 year low. 

U.S. Economic Update, May 2017

U.S. unemployment is at its lowest level since May 2007, following a strong month of job growth in April and wage growth has edged upwards.

Following the Federal Open Market Committee’s meeting in May, the federal funds rate was maintained at 0.75-1%.

The Fed continue to expect gradual increases in the rate going forward as they keep a close eye on economic indicators. 

  • Total payroll employment increased by 211,000 jobs during the month of April, higher than the average of 174,000 over the last three months. The unemployment rate is now 4.4%, the lowest in nearly ten years.
  • Professional and business services added 39,000 jobs, while health care and social assistance added 37,000 jobs to the economy. 
  • The labour force participation rate, at 62.9% is little changed over the year. Average hourly earnings in April rose 7 cents to $26.19, a 2.5% rise over the year.
  • The first quarter report is in, and the economy grew 0.7% during the first three months of 2017. The Federal Reserve commented that the first quarter was likely “transitory” and, in line with previous reports, expects that economic activity will expand at a moderate pace. 
  • In April 2017, there were over 1 million (1,106,000) privately owned home completions, a 15.1% increase from the same month last year.