Speaker McCarthy was forced out with little over a month until the temporary government funding deal expires. To understand how this could impact our economy, we took a look at key economic indicators to get a sense of investment trends, shifts in the labor market, and overall health for various industries—all of which can influence the pace and direction of the clean energy transition. Here’s a quick snapshot into what they mean:
- Construction spending rose 7.4% in August compared to last year, with a staggering surge in investment toward building new manufacturing plants, up by 65.5% from last year. But, high inflation and supply chain constraints are proving to be a sticky issue keeping some projects from taking off.
- As sectors like manufacturing expand, we see increased workforce demands to support this growth. Purchasing managers noted strong jobs in the supply chain for the month of September to build that support.
- Industries are hiring–seasonally adjusted figures in the latest Job Openings and Labor Turnover Survey show a stable hiring rate with little change in quits and separations. And with unemployment insurance claims falling, key economic markers point to a solid labor market, which we saw confirmed today as the economy welcomed an unprecedented 336,000 new jobs–the biggest gain since January.
The Bottom Line: The labor market is in good shape, with important sectors of the economy growing and jobs opening up in fields like construction, which saw 11,000 new jobs added last month. But even with significant levels of investments, high interest rates and rising material costs are making it difficult to continuously finance projects. If you’ve paid attention to the wind industry, you’ll notice this is becoming an alarming pattern. And with lingering inflation, gas prices
creeping up, and mortgage rates at a 23-year high, most Americans won’t see much cause for celebration.
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