The stars are aligned for President Donald Trump. An acquittal at his impeachment trial by the Republican majority in the US Senate. Then his angry and vindictive reality-TV-style State of the Union address, that has helped boost his poll numbers. And not forgetting the Democratic Party's fiasco during the Iowa caucus.
Now the latest jobs report exceeds expectations with the US economy adding 225,000 jobs in January in contrast to the 160,000 that was expected by analysts. However, the unemployment rate rose to 3.6 per cent because more people decided to look for jobs during the period.
The jobs report published by the US Bureau of Labour Statistics showed that jobs growth was at its strongest in the construction given the mild weather, as well as in health care, transportation and warehousing sectors.
Although there was an increase in factory activity in January, manufacturing jobs remain sluggish as the sector experienced the second consecutive monthly decline. But experts are not overly concerned about the manufacturing jobs situation because there is no evidence of a fundamental problem in the manufacturing sector.
A sign that something significantly negative was happening to the construction sector would probably involve another sector like transportation. For instance, if there is a sustained job decline in the transportation sector, then it would signal a downturn in the production, trade and delivery of goods.
But that wasn't the case, because the transportation sector added 28,000 jobs in January giving President Trump, even more, to be happy about as he campaigns for reelection.
Interested in learning how to trade fundamentals yourself? Check out our course here!