Donald Trump spent his first months in office touting the U.S. economy. The economy that rebounded under President Obama and was still riding on the former President’s coat tails.
Now, new data is suggesting that Trump’s administration is leading the U.S. economy in the wrong directly.
The March jobs report reported that only 98,000 jobs were added to the U.S. economy, that’s well below economists’ expectations for gains of closer to 180,000 ahead of the data.
Bank of America Merrill Lynch reports that the U.S. economic surprise index is starting to roll over.
Economic surprises have started to turn down in recent weeks, bucking a months-long trend. (Source: Bank of America Merrill Lynch)
“For the first time since the US elections economic data overall have begun to surprise to the downside,” writes Hans Mikkelsen, a credit strategist at BAML.
We don’t know how the individual data releases are weighted, but it could be a bad sign for Trump and the U.S. in general.
There are still a lot of factors to examine, for example, overall economic confidence and activity, but it’s a downturn the President can’t afford as a time when his approval rating is in the gutter.
Mikkelsen says the drop in expectations, “comes after an extended period of time where, as we have addressed frequently, loan data has been weak.”
So where are those jobs President Trump promised?
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