Economy

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Mortgage applications released by the Mortgage Bankers Association (MBA) rose 2.7% in the past week Mortgage interest rates fell on two of five types of loans. Spring homebuying season helped the buyers interest.

The US labor market has seen average hourly earnings grow 3% year-over-year and the April jobs report saw the ninth straight month of wage growth. The recent increases to minimum wages. We look at the fastest growing jobs out of the inaugral Glassdoor Job Market Report. 

The US Labor Department April jobs report Friday showed a higher than expected 263,000 NFP jobs added. Unemployment stayed fell to 3.7%, the lowest since December 1969. Participation rate fell to 62.8 from 63.0%.

Real gross domestic product (GDP) increased 3.2% in the first quarter of 2019, according to the “advance” estimate released by the Bureau of Economic Analysis. Core PCE +1.3% vs +1.4% expected

The US trade deficit in February was $49.4 billion down from the prior month's $51.1 billion. We saw a 10-year high deficit of $621 billion in 2018. Trade tariffs appear to be impacting China, the Chinese February trade deficit fell to -$24.76 billion from a deficit of -$34.47 billion.

The U.S. jobs added NFP +196k jobs in March, higher than 177k expected and 33k in February. Unemployment stayed at 3.8% 48 year low. Participation rate fell to 63.0 from 63.2%. Wages were less than expected with Avg hourly earnings +0.1% m/m v +0.3% exp, +3.2% y/y v +3.4%

The European services sector strength contrasts with weak manufacturing conditions. Growth was led by Germany and Spain. Suggesting that the domestic economies aren't as burdened by the global trade war and Brexit drama. Resilient rate of growth that has lost some momentum.

The US manufacturing sector has been weakening along with the global economy. On Monday the Markit final US March manufacturing PMI came in at 52.4, the lowest since June 2017. However the regional Chicago ISM Manufacturing PMI rebounded to 55.3.

European manufacturing PMIs were mostly soft as the global trade war and Brexit drama weighed. Germany and Italy were notable contributors to the stronger decline. Netherlands and Spain the only two over 50.0

The UK manufacturing sector had been weakening along with the global economy. On Monday the Markit final UK March manufacturing PMI came in at 55.1 vs 51.2 expected boosted by stock purchases ahead of Brexit hitting a G-7 record.

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