• The Blame Game

    Why is the services sector slowing? The manufacturing sector in this country has seen better days and continues to contract, but the services side of the economy, which is a much larger part of our economy today, rebounded in October after hitting a three-year low in September. The index saw improvements for new orders as well as employment, which increased 3.3 points from a five-year low in September.  Moral of the story: Services sectors have been more insulated from the negative impacts of the trade war with China compared to manufacturing sectors but have still been impacted by the slowdown. The ISM non-manufacturing index six points lower than its cycle…

  • Trick or Treat

    The Almond Joy  The first read on third quarter GDP showed the economy grew at an annual pace of 1.9%. While its lower than what we saw last quarter, things could have definitely been much worse. Consumers continued to do their part to keep this record long economic expansion going as consumption, which accounts for 70% of the economy, increased 2.9%. Businesses, on the other hand, slowed as spending on equipment fell 3.8% and investment in structures fell more than 15%, which is the steepest decline in almost four years. Moral of the story: While businesses have become increasingly cautious, consumers seem to have to have acclimated to the economic uncertainties presented by a…