The U.S. Department of Labor released a statement today that the unemployment rate in July remained at 9.5%. This means that though the private sector reported an increase in jobs, it was not enough to combat the 131,000 jobs lost in July and create a reduction in the unemployment rate.
The Federal Reserve released its Consumer Credit report which showed a decrease in consumer credit in June. It is likely that insecurity about economic recovery and employment is to blame for the lowered borrowing. You can access the entire report here. From a personal finance point of view, reduced borrowing is a good thing and a sign of strengthened financial foundations for families. However, when people don’t spend money, the economy has more trouble improving and businesses—which make less money as consumer spending contracts—have more trouble creating jobs, so it really is a two-edged sword.
Early in the day, the Dow Jones Industrial Average fell more than 150 points. By the end of the day it rallied to close down just 23.01 points at 10,651.97. The Nasdaq fell 4.64 points to 2,288.42 and the S&P 500 dropped 4.32 points to 1,121.49.
European markets were down Friday while Asian markets were mixed.
