With the unemployment rate also declining to 6.1% the US can confine to history the incredibly harsh winter it suffered, which caused a huge hiccup in its latest GDP reading. The future is brighter and now the US can look forward to a stronger economy as the labour market continues to improve, as evidenced by not only today’s data, but the initial jobless claims that have been continuing to trend downwards throughout the year.
Many investors have been waiting for stronger evidence that the world’s largest economy is in good shape and today certainly does that. This will allow the Federal Reserve to continue in its tapering and even prepare the ground for raising rates next year.
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