The Stealth Economic Boom That Is Upon Us

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The astounding economic statistics just keep rolling in. Today was an especially big day for economic releases led by the blockbuster Non-Farm Payrolls and Manufacturing. It was of the highest quality, beating all metrics with the unemployment rate at a low of 3.8%, the second lowest reading since 1969 when Neil Armstrong landed on the moon. We are watching manufacturing very closely because it is a jobs machine in that every manufacturing job produces three jobs to support it. May’s ISM Manufacturing blew out the consensus with a 58.7 led by New Orders, Shipments and Backlogs. Manufacturing and the associated capital investment that is taking place now in the second quarter won’t be officially reported until July 27th but is undoubtedly building around a huge 3.6% Q2 GDP growth rate with upside potential.  We are in a virtuous cycle that will lead to higher real wages and higher productivity, a game changer sparked by pro-growth economic policies. The U.S. is leading the pro-growth charge with low taxes and deregulation policies but make no mistake, every country in the world will have to jump on the bandwagon – especially Europe – in order to stay competitive. It looks like this not so “stealth” economic boom is taking us into the “double-header” of this bull market.

For more information on U.S Manufacturing, please see page 10 of the Global Perspectives book.

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