The labor market is still extremely tight and manufacturing continues to expand

Last week’s economic data featured evidence of continued strength in the labor market. Nonfarm payrolls were still solid although slowing from July’s surge, while the unemployment rate climbed because of an increase in labor force participation. Also, the ISM manufacturing index remained in expansion and showed the slowest increase in input prices since before the pandemic.

Key Takeaways:

What we learned last week: (pg. 1)

• Job growth is slower but still strong
• Manufacturing input price growth has slowed dramatically

What we’re watching this week: (pg. 2)

• Service activity should show continued expansion
• Growth in consumer credit expected to slow
• Household net worth likely to fall again

View our informative commentary on the economy and financial markets – and find out what we’re watching for the week ahead: