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AP News | Equities.com |

U.S. consumer borrowing rose by a solid 3.6% in July, the second monthly gain after the coronavirus pandemic had sent borrowing down sharply in the previous three months.

The Federal Reserve reported Tuesday that the 3.6% increase in July, which represented a $12.2 billion advance, followed a 3.3% rise in June and sharp declines in March, April and May.

The strength in July came from a $12.5 billion rise in the category that includes auto loans and student loans. The category that covers credit cards fell by $293 million, the fifth straight month that the credit card category has declined.


Reuters | Equities.com |

The U.S. Federal Reserve’s landmark shift to a more tolerant stance on inflation will be a drag on the dollar for years and will raise hard questions about the role of central banking, challenging policymakers from Frankfurt to Tokyo.

On the face of it, the Fed’s policy tweak, unveiled on Aug. 27, appears tailored to giving the U.S. economy a shot in the arm. A shift to average inflation targeting lets the Fed oversh...


Reuters | Equities.com |

(Reuters) - The gap in unemployment rates between Blacks and whites in the United States widened for a fourth straight month in August, and the spread between the races is now the largest in nearly six years.

The jobless rate for Blacks dropped by 1.6 percentage points to 13% in August from 14.6% in July, while the rate for whites dropped at a faster rate of 1.9 percentage points to 7.3% from 9.2% a month earlier. The overall U.S. unemployment rate fell more than expected last month to 8.4% from 10.2% in July.


AP News | Equities.com |

The U.S. unemployment rate fell sharply in August to 8.4% from 10.2% even as hiring slowed, with employers adding the fewest jobs since the pandemic began.

Employers added 1.37 million jobs, the Labor Department said Friday, down from 1.7 million in July. The U.S. economy has recovered about half the 22 million jobs lost to the pandemic.

Friday’s report from the Labor Department added to evidence that nearly six months after the coronavirus paralyzed the country, the economy is mounting only a fitful recovery.


AP News | Equities.com |

Growth in the U.S. services sector, where most Americans work, slowed in August after big rebounds in June and July, indicating lingering problems stemming from the coronavirus pandemic.

The Institute for Supply Management reported Thursday that its index of activity in the services activity showed a reading of 56.9% in August, down 1.2 percentage-points from the July reading of 58.1.

Any reading above 50 indicates growth in the services sector. By that measure, the services sector has shown growth for three straight months after taking a big hit in the spring when the country shut down to combat the coronavirus.


AP News | Equities.com |

The number of laid-off Americans applying for unemployment benefits fell to a still-elevated 881,000 last week, evidence that the viral pandemic keeps forcing many businesses to slash jobs.

The latest figures, released Thursday by the Labor Department, suggest that nearly six months after the eruption of the coronavirus, the economy is still struggling to sustain a recovery and rebuild a job market that was devastated by the recession. In the previous week, more than 1 million had sought jobless aid.


Reuters | Equities.com |

U.S. private employers hired fewer workers than expected for a second straight month in August, suggesting that the labor market recovery was slowing as the COVID-19 pandemic persists and government money to support workers and employers dries up.

Large businesses accounted for the bulk of the job gains shown in the ADP National Employment Report on Wednesday, with small enterprises posting a modest increase. A $600 weekly unemploym...


AP News | Equities.com |

Congressional investigators say they have identified lapses pointing to possible fraud and abuse in the Trump administration’s coronavirus relief program, including more than $1 billion awarded to small businesses that received multiple loans.

A report issued Tuesday by a House subcommittee says a lack of government oversight and accountability for the $600 billion-plus program “may have led to billions of dollars being diverted to fraud, waste and abuse, rather than reaching small businesses truly in need.”


Reuters | Equities.com |

The Federal Reserve will need to roll out new efforts “in coming months” to help the economy overcome the impact of the coronavirus pandemic and live up to the U.S. central bank’s new promise of stronger job growth and higher inflation, Fed Governor Lael Brainard said on Tuesday.

“It will be important to provide the requisite accommodation to achieve maximum employment and average inflation of 2% over time,” Brainard...


Reuters | Equities.com |

U.S. manufacturing activity accelerated to a more than 1-1/2-year high in August amid a surge in new orders, but employment continued to lag, supporting views that the labor market recovery was losing momentum.

The Institute for Supply Management (ISM) said on Tuesday its index of national factory activity increased to a reading of 56.0 last month from 54.2 in July. That was the highest level since January 2019 and marked three straight months of growth.

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