Read the highlights of this week’s commentary from Helios:
- The U.S. added just 22,000 jobs in August vs. 75,000 expected, the weakest gain since the pandemic recovery began. The unemployment rate rose to 4.3%, and prior months were revised down by 21,000 jobs. June data was revised to show the first monthly jobs decline since 2020. This weak report adds pressure on the Fed to cut rates at its September 17–18 meeting.
- U.S. manufacturing remained in contraction in August, with the Institute for Supply Management’s Purchasing Managers Index rising slightly to 48.7 but staying below the 50-expansion threshold for a sixth straight month. New orders improved, signaling growth, but production dropped. Survey respondents pointed to tariffs raising costs and disrupting supply chains, underscoring that trade policy remains a headwind for manufacturers.
- The U.S. trade deficit widened to $78.3 billion in July, the highest in four months, from $59.1 billion in June. Exports rose 0.3% to $280.5 billion, but imports jumped 5.9% to $358.8 billion, led by gold, computers, and telecom equipment. The gap highlights resilient consumer demand and points to continued pressure on GDP from rising imports.
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