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U.s. Economy Probably Lost Jobs For Seventh Consecutive Month

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Aug. 1 (Bloomberg) -- The U.S. probably lost jobs in July for a seventh consecutive month and the unemployment rate rose, increasing the risk the economic slowdown will worsen, economists said before a government report today.

Payrolls fell by 75,000 after a 62,000 decline in June, according to the median estimate of 80 economists surveyed by Bloomberg News. The jobless rate probably rose to 5.6 percent, the highest level in four years, according to the survey median.

Fewer jobs, combined with decreasing property values, stricter lending rules and near-record energy prices, would further undermine the ability of Americans to spend. Cutbacks at UAL Corp. and Starbucks Corp. signal firings are spreading beyond builders and manufacturers as the cost of raw materials soars.

``We'll see accelerated declines in payrolls,'' said Lindsey Piegza, an economic analyst at FTN Financial in New York. ``That will really compound the pressure on the consumer.''

The Labor Department's employment report is due at 8:30 a.m. in Washington. Payroll estimates in the Bloomberg survey ranged from a decline of 150,000 to no change. The jobless rate is forecast to rise from 5.5 percent in June.

A private report today may show manufacturing shrank in July for the sixth time in eight months. The Institute for Supply Management's factory index fell to 49 from 50.2 in June, according to the Bloomberg survey median. A reading of 50 divides growth from contraction.

The payrolls report is projected to show a 40,000 decline in factory jobs.

I thought the whole point of monetary policy was to stop people SPENDING!!!!

“William McChesney Martin Jr. vividly described the Fed's role as to "take away the punch bowl." In essence, the Fed was supposed to be the "adult chaperone" at an economic party that was likely to get out of hand. Thus, the Fed was supposed to allow, even induce, if necessary, the occasional recession to cleanse the excesses of the economy”

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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