U.S. job growth slowed more than expected in July as employment in the transportation and utilities sectors fell, but a drop in the unemployment rate suggested that labor market conditions continued to tighten. Nonfarm payrolls increased by 157,000 jobs last month, still more than the roughly 120,000 jobs per month needed to keep up with growth in the working-age population. The economy created 59,000 more jobs in May and June than previously reported. The trade conflict intensified Friday, with China’s Ministry of Commerce proposing import tariffs on US$60 billion worth of U.S. goods and warning that it reserved the right of further countermeasures. Economists have cautioned that the tit-for-tat import duties, which have unsettled financial markets, could undercut manufacturing through disruptions to the supply chain and put a brake on strong U.S. economic growth. There are also fears that the trade tensions could dampen business confidence and lead companies to shelve spending and hiring plans. The trade tensions are looming large over the economy. A survey from the Institute for Supply Management on Friday showed the services sector growing at a slower pace in July. Separately, the US Commerce Department said the U.S. trade deficit widened sharply in June. (SD-Agencies) |