"Contrary to some of the headlines, today's employment report for May supports our belief that the economic recovery may be faltering. First, the 41,000 added to payroll employment fell short of expectations for an increase of 54,000. Second, the April number, originally reported at plus 43,000, was revised downward to plus 6,000. This was the third consecutive month that the increase in employment was almost revised away. Third, the annual benchmark revisions indicated that the employment picture for the past 12 months was much worse than reported. With the benchmark revisions in place, April total employment was 523,000 less than indicated by the past monthly data. As a result of the tepid employment numbers, the low consumer savings rate, the end of the tax refund season, record debt and the end of zero rate auto financing, we think that consumer spending may falter in the months ahead, and that there is no other strong driver to propel the economy ahead."
comstockfunds.com
Best regards,
Gf |
