U.S. Economic News

October 5, 2020

U.S. Economic Indicators

The ISM Services Index rose 0.9 point to 57.8 in September, indicating continued growth in the services sectors at a faster rate than last month. The New Orders Index increased 4.7 points to 61.5, while the Employment Index rose 3.9 points to 51.8. ISM Report

U.S. News

According to the Washington Post, despite renewed hopes of reaching an agreement on a new round of coronavirus relief over the weekend, a deal between House Democrats and the Trump administration remains elusive. House Speaker Pelosi and Treasury Secretary Mnuchin have agreed to another round of stimulus payments, but the two sides remain $600 billion apart and in disagreement on the level of tax credits for children and families, the amount of enhanced unemployment insurance, and state and local government aid. WaPo

The New York Times reports that six months into the crisis, business hopes of a short-lived labor market shock are beginning to wane as the number of permanent job losses increases with little sign that the virus is going away soon. Although the unemployment rate continues to decline, the Times report emphasizes that other indicators such as the number of marginally attached workers provide a more complete picture of a sluggish and slowing labor market recovery. NYT