Economics impacts us all daily. Below are highlights last week’s news with links to relevant articles. More

A trade war, and slowing global economies have hurt the industrial sector, but our service economy has been more resilient and helped the US economy remain relatively healthy. Approximately 80% of the US labor force work in the service economy. Household income is rising, and people feel secure in their employment status. Households should continue to spend more. Consumer spending remains the US economy’s primary driver. Yet, manufacturing is suffering. More

Last month, the Federal Reserve reduced its target federal funds rate 0.25% as a preemptive strike because it fears the weakening of the economy. Economic growth has slowed, particularly in agriculture and manufacturing where the impact of tariffs hit the hardest. Real gross domestic product (RGDP), the most common measure of economic growth, slowed from 3.1% in the first quarter to 2.1% in the second quarter, causing concern among businesses and investors. The Dow Jones Industrial Average has recently fallen over 1,000 points. However, it is likely the economy’s expansion will persist because consumers continue to spend, people are still being added to payrolls and inflation remains low. More

The May economic reports indicate that the US economy continues to thrive, although some economists fear the expansion is near its peak and threatened by the trade wars. Many of this group believe expansionary monetary policy is appropriate to prolong the expansion. Access ten reports and read my summary and analysis. More