This series will dive into our monthly State of the Economy report, providing a snapshot of the top monthly economic and credit data for those in financial services to proactively shape their business strategies.
The labor market has been a source of strength for the U.S. economy coming out of the pandemic, providing workers with stable employment and solid wages. However, the labor market has slowed in recent months, with lower-than-expected job creation and rising unemployment, causing weakening sentiment in the broader market. This has resulted in increased pressure on the Federal Reserve to begin cutting rates and places more importance on the incoming data between now and the September FOMC meeting.
Data highlights from this month’s report include:
- Job creation declined in July, falling short of economists’ expectations. Unemployment increased from 4.1% to 4.3%.
- Inflation cooled again in July, with annual headline inflation easing from 3.0% to 2.9%.
- GDP picked up in Q2 to 2.8%, primarily driven by strong consumer spending.
Check out our report for a deep dive into the rest of this month’s data, including the latest trends in originations, retail sales, and the new housing market.
To have a holistic view of our current environment, it’s important to view the economy from different angles and through different lenses. Download our latest macroeconomic forecasting report for our views on what’s to come in the U.S. economy and listen to our latest Econ to Action podcast.
For more economic trends and market insights, visit Experian Edge.
