U.S Economy
U.S. employers added 339,000 jobs in May. This is well above expectations and shows evidence of enduring strength in an economy the Fed Reserve is trying to cool.
As long as the U.S. economy continues the steady job growth we have been seeing over the last few months, the economy is not expected to slip into a recession.
Economic Indicators
Business conditions softened in April, as the Architecture Billings Index fell back to below 50, to 48.5. A score below 50 indicates a decline in firm billings.
The May Purchasing Managers Index also declined month-over-month to 46.9%, a 0.2 point decline from April.
Consumer Confidence for the month of May fell to 102.3, down from April’s reading of 103.7.
Industry News
The U.S. is seeing an oversupply in the pork industry and hog farmers are losing money at the worst rate in decades. However, the glut of pork in the market has yet to translate to lower prices for consumers.
The entire hog farming industry has been impacted, including farm expansion plans, new equipment orders, and larger renovations.
U.S. pork producers started expanding farms and processing plants in recent years as overseas demand boomed due to hog herds in China being devastated by an African swine-fever outbreak in 2018. However, export volumes fell 10% from last year as China began rebuilding it’s hog population.
China has also had delayed economic and industrial recovery due to COVID. This slow recovery has had an impact of global metal trade. China is the world’s heaviest user of copper and steel. As a result, the nation’s delayed recovery is wreaking havoc on global supply chains.
