Is Economic Growth Sustainable?
In May, the U.S. unemployment rate dropped to 3.8%, as low as it's been since 2000, and the economy added 223,000 new jobs - more than the 190,000 expected.
The manufacturing purchasing managers index, in the past, dropped below 50 right before a recession hits. While May's reading of 58.7 was off from record-highs of the past year, the latest numbers were strong and nowhere near signaling a slowdown.
Meanwhile, new orders coming into manufacturers, which are not shown here, soared last month to 63.7, according to the Institute for Supply Management. That's a booming level for manufacturing, which accounts for about 12% of the total economy in the U.S., and the new orders index is a forward-looking benchmark of what's to come in the weeks immediately ahead.
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