Read the highlights of this week’s commentary from Helios:
- The U.S. added 139,000 jobs in May, slightly above expectations, while the unemployment rate held at 4.2%. Wage growth remained solid at 3.9% year-over-year, but labor force participation declined. Earlier months were revised lower, pointing to slower momentum. The report suggested a cooling but stable job market, reinforcing expectations that the Fed will keep rates steady through the summer.
- The ISM manufacturing and services PMIs both contracted in May, signaling a broader slowdown. Manufacturing fell to 48.5, but improving new orders and employment, along with low inventories, suggest a possible rebound. Services slipped to 49.9 as demand weakened and tariff uncertainty delayed purchases. Prices surged in both sectors, with rising costs increasingly passed on to service providers.
- The latest Beige Book, the Fed’s report on regional economic conditions, shows a slight decline in economic activity and rising uncertainty. Firms are delaying hiring, and labor demand is softening. Consumer spending was mixed, with some pre-tariff buying. Many businesses expect rising costs and are responding by raising prices, adding fees, or absorbing losses, signaling growing downside risks for the economy.
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