Sure Donald Trump and Republicans ARE gonna boast about the American economy and the stellar US Stock Market highs…
But?
Go out ask those you know if they think the American economy is ‘Great’?
At the peak of the holiday season, retail added 41,000 jobs despite continued waves of store closures. Just in the past week, Pier 1 Imports said it would close up to 450 stores after a 13 percent drop in quarterly sales, and Macy’s said it would close 29 stores within weeks.
Average hourly earnings rose by a mere 0.1 percent in December, meaning over the past year, wage growth is at 2.9 percent.
Economists say wages are not growing as fast as they should be, especially for those who aren’t seeing a boost from state and local minimum wage increases. Many businesses are still pulling back on investment and say Trump’s truce with China does little to assuage their anxiety. Plus, Democratic leaders and presidential hopefuls caution that Trump’s economic and trade agenda could eventually stymie the growth.
Diane Swonk, chief economist for the accounting firm Grant Thornton, said the disappointing wage growth reflects “an economy where you can get a job, but it’s harder to get a raise.” Swonk said it’s possible wage growth figures for the start of 2020 could be ever harsher because wages for 2019 peaked in February….
Note…
A number of on-demand services companies are turning to layoffs to trim costs and shore up their balance sheets.
Why it matters: After years of seeing their unprofitable growth subsidized by plentiful venture dollars, companies are facing increased pressure to prove they can stand on their own two feet.