White House economic adviser Larry Kudlow says that Friday’s robust jobs report is undisputable proof that President Donald Trump’s “economic boom continues” in the "biggest story" of the year that is ignored by mainstream media.
U.S. job growth accelerated in August and wages notched their largest annual increase in more than nine years, strengthening views that the economy was so far weathering the Trump administration’s escalating trade war with China.
The Labor Department’s closely watched employment report published on Friday also showed slack in the jobs market was rapidly diminishing, with a broader measure of unemployment falling to a level not seen since 2001. The report cemented expectations for a third interest rate increase from the Federal Reserve this year when policymakers meet on Sept. 25-26.
"Wages are rising very very well. This is great stuff. And it's widespread," the Naational Economic Council Director told CNBC. "ISM manufacturing BOOM! ISM services BOOM!" said Kudlow, who served as the Trump campaign's senior economic adviser.
Nonfarm payrolls surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labor Department said. There were also gains in transportation and healthcare employment.
Job growth averaged 185,000 per month in the past three months. The economy needs to create 120,000 jobs per month to keep up with growth in the working-age population.
Average hourly earnings increased 0.4 percent, or 10 cents in August after rising 0.3 percent in July. That raised the annual increase in wages to 2.9 percent in August, the largest gain since June 2009, from 2.7 percent in July.
"There is no let up to this. Consumer spending, we're probably emerging into a capital goods boom right now ... This is the take-off," the veteran financial guru and former Ronald Reagan adviser said.
"The economic boom continues," he said. "It's the big story of 2018," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.
Others agree with Kudlow.
“The economy is on an adrenalin rush,” said Ryan Sweet, senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Given the amount of fiscal stimulus that the economy is benefiting from, it’s going to take a lot to get it off that high.”
Material from Bloomberg and Reuters were used in this report.
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