On Wednesday, the 4th of December 2019, slowdown fear resurfaced again over a sharply slowing US economy following release of US Labour Department’s data, while ISM service sector index had also pointed to a steep slowdown.
According to Wednesday’s (December 4th) private payroll data, private employers in the United States added only 67,000 jobs in November, remarking its smallest gain since May when the US economy had created only 46,000 jobs, the index’s lowest reading since 2010, suggesting that a decade long streak of gain of US economy entering into its 124th month might have been hovering at the edge of a cliff, as a monthly creation of at least 100,000 jobs has been the minimum requirement to sustain US economic growth, analysts said.
Meanwhile, casting further clouds over a corroding US economy, the Institute of Supply Chain Management (ISM) reported on Wednesday (December 4th) that the ISM’s non-manufacturing activity index was faltered to a reading of 53.9 on November, down from a figure of 54.7 in October.
Besides, Wednesday’s (December 4th) downbeat data remarking a debarkation of further withering backdrop over a sharply slowing US economy amid a protracted trade spat with Beijing came forth just a day after ISM data had revealed that the US manufacturing activity was drowned further into a recession to a figure of 48.1 in November from a reading of 48.3 a month earlier, while blaming Trumps’ China tariff behind November’s bleak data, a Chief Economist at MUFG in New York, Chris Rupkey said, “The decline in the index in November seems to reflect the tariffs that are impacting the prices of many products that services companies use to provide their services to other companies and consumers. China is not paying for all the tariffs apparently. ”