July 3, 2008
HP-1067
Treasury Economic Update 7.3.08
UPDATE 7.3.08
"Today's employment data reflect the impact of the headwinds we face from high energy prices, the housing correction, and the credit disruption. The rebate checks and investment incentives in the stimulus package are helping to support spending while adjustments continue in housing and financial markets."
Assistant Secretary Phillip Swagel, July 3, 2008
Employment Fell in June:
Job Growth: Payroll employment fell by 62,000 in June, following a decrease of 62,000 in May. The United States has added about 7.8 million jobs since August 2003. Employment increased in 35 states and the District of Columbia over the year ending in May. (Last updated: July 3, 2008)
Unemployment: The unemployment rate was 5.5 percent in June, unchanged from May. (Last updated: July 3, 2008)
Signs of Economic Strength Include Exports and Low Inflation:
Exports: Strong global growth is boosting U.S. exports, which grew by 9.5 percent over the past 4 quarters. (Last updated: June 26, 2008)
Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.3 percent over the 12 months ending in May. (Last updated: June 13, 2008)
The Economic Stimulus Package Will Provide a Temporary Boost to Our Economy:
The package will help our economy weather the housing correction and other challenges. The Economic Stimulus Act of 2008, signed into law by President Bush has two main elements--stimulus payments so that working Americans have more money to spend and temporary tax incentives for businesses to invest and grow. Together, the legislation will provide about $150 billion of stimulus for the economy in 2008, providing a meaningful boost to the U.S. economy in 2008. (Last updated: February 29, 2008)
Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength:
We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06. Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects strong economic growth. Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs.