In This Issue:
Mixed Signals About Third Quarter Growth
• The August employment report signaled continued modest job growth. Nonfarm payrolls rose 169,000 while the unemployment rate edged down slightly to 7.3 percent.
• Both the ISM-manufacturing and non-manufacturing indices came in stronger than expected for August, suggesting a pickup in manufacturing and service sector growth in the second half of the year.
• International trade data for July showed that the trade balance widened for the month after declining sharply in June. On net it does not appear trade will play a role in adding or subtracting from third quarter GDP growth.