Despite frequent headlines suggesting otherwise, recent economic data shows that the U.S. economy continues to perform strongly compared to historical trends and other advanced economies.
Consider several key indicators from the most recent economic reports:
- Job Growth: The U.S. added 254,000 new non-farm jobs in September, while unemployment remains near 4%, historically considered a very low level.
- Manufacturing Jobs: Excluding pandemic disruptions, manufacturing employment has increased by an average of 18,200 jobs per month during the Biden administration, compared with 11,600 per month pre-pandemic.
- Savings Rates: Interest rates on Certificates of Deposit (CDs) are currently between 4% and 5%, providing stronger returns for savers.
- Stock Market: The stock market has risen roughly 22% in 2024, reaching historic highs.
- Inflation: Inflation has declined to approximately 2.4%, close to the long-term historical norm.
- Gas Prices: Gas prices have fallen in many parts of the country, with some areas seeing prices below $3 per gallon.
- Wage Growth: Wages for workers have recently grown faster than inflation. Real average hourly earnings increased 1.5% from September 2023 to September 2024.
As The Economist recently summarized:
“The American economy has left other rich countries in the dust.”
While economic challenges remain, these indicators highlight the resilience of the U.S. economy and the continued strength of American workers and businesses.
