U.S. Economic News

August 7, 2020

U.S. Economic Indicators

The U.S. economy added 1.8 million jobs in July, broadly in line with expectations. The unemployment rate fell to 10.2% and labor force participation edged down from 61.5% to 61.4%. BLS Report

U.S. News

The Wall Street Journal reports that the market for auto loans – which has increased more than 90% in the past decade – could face significant pressure if expiring economic relief measures lead to a spike in loan defaults. Many auto loans are now securitized, making it more difficult for borrowers to modify repayment terms during the current economic downturn. WSJ

The Financial Times reports that the White House has reinstated a 10% tariff on certain Canadian aluminum imports, citing a surge in Canadian aluminum entering the U.S. since the USMCA trade deal went into effect. Several American industry groups have criticized the move, arguing that Canada is an important, reliable source of raw aluminum for domestic manufacturers. FT