Payrolls Probably Fell for Seventh Month: U.S. Economy Preview

[marmar]

from Bloomberg:



Payrolls Probably Fell for Seventh Month: U.S. Economy Preview

By Shobhana Chandra

July 27 (Bloomberg) -- The U.S. lost jobs in July for the seventh straight month, a sign the economy may weaken after tax rebates boosted growth in the second quarter, economists said before reports this week.

Payrolls probably shrank by 75,000, according to the median estimate in a Bloomberg News survey ahead of a Labor Department report on Aug. 1. The economy expanded at a 2.3 percent annual rate from April to June, more than twice the pace of the prior quarter, other figures may show.

Sustained job losses will take a toll on Americans already burdened by record gasoline costs, plunging home values, and shrinking access to credit. The weakening labor market reinforces concern consumer spending will falter once the cash from the tax rebates is used up.

``With the tax rebates, we essentially put our troubles off for another day,'' said Maxwell Clarke, chief U.S. economist at IDEAGlobal Inc. in New York. ``The weakening employment market will definitely hurt the consumer's ability to spend.''

The employment report may also show the jobless rate rose to 5.6 percent in July, the highest level in four years, according to the Bloomberg survey median. Factory payrolls probably fell by 40,000, the report may show.

Last month's job cuts would follow a 62,000 reduction in June, bringing the total drop in payrolls so far this year to more than half a million. The three-year housing slump and prolonged credit crisis signal builders and financial firms will probably fire even more workers in coming months. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601068&sid=aqVsmHJJACKs&refer=home

[Skink]

1. Wall street got drunk I tell ya.

[DJ13]

2. ........

[Atman]

3. I can't believe they're still pushing this bullshit "jobless rate."

Oh, wait...they lie about EVERYTHING. Of course I can believe it.

BTW, for what it's worth, do some research. The TRUE jobless rate is about 14% by now, probably even worse. But, of course, we've grown so accustomed to Bush's lying that we accept his ridiculous 5.6% nonsense.

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[OhioChick]

4. K&R

:kick: