How is the economy doing? While there may be negativity out there, the economy is doing well!
Hello, welcome to Arista Advice! Question of the week is: "Paul, how is the economy doing?" The engine of the economy is the stock market, and that's driven by future cash flow. The carburetor, or the transmitter of the car, of this economy is jobs.
One strong indicator is that last month, in July, the unemployment rate returned to the pre-pandemic level of 3.5%. Nonfarm payrolls rose by 398,000. With unemployment so low, labor demand goes up and so do wages. Average hourly earnings increased by half a percent last month, and earnings have grown 5.2% year over year. Both of these are signs of a growing economy.
As interest rates continue to climb to stop inflation, these may slow down, but both unemployment and wages are very strong right now. And those are important things to remember, there's a lot of scary news analyst, scary articles, and scary neighbors. You all know who these negative Nellies are out there on our street and in our group text chats or are in our phones. Let's ignore them. Let's look for the sunshine that exists in our life and many positive things will happen.
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