Even though there are perils to the US economy from hurricane Nate and North Korean missile tests, the US economy is looking up.The economic statistics show that economic growth is on the rise. The unemployment rate is at its lowest in sixteen years but destruction from Hurricane Nate and apprehensions related to North Koreas missile tests pose challenges to the economy. The Trump administration has promised tax cuts and taken a pro-growth stance and the measures taken by Trump administration are having a positive effect on the economy.

The US Economy is improving

According to FXCM, the US unemployment rate fell to 4.2 percent, the average hourly earnings increased by 2.9 percent, and ISM manufacturing was 60.8 instead of the 58.1 expected by financial analysts. These figures reflect the strength and growth of the US economy. This is despite the damage done by Nate in the Gulf Coast and the possibility of North Korea firing another medium or long-range ballistic missile.

North Korea and Hurricane Nate pose challenges

The improvement in the US unemployment rate puts pressure on the Federal Reserve to increase rates in December. The unemployment rate of 4.2 percent is the lowest in 16 years but there are challenges to the economy.

The change in Non-Farm Payrolls for the month of September is minus 33 thousand against the expected increase of 80 thousand. Financial analysts have attributed the negative NFP to the impact of storms. This is why the economy shudders when the country is hit by storms such as Hurricane Nate. Currently, US financial analysts are waiting for further tests by North Korea of a long-range ballistic missile.

Any prospect of military aggression can disrupt the US economy.The North Korea test is expected to be one more in the series of tests that the country is carrying out. The test may not trigger any military actions.

Trump’s policies are working

Currently, the economy is responding to the pro-business stance of the Trump government.

If Trump’s across-the-board tax cuts get through, then the American economy will shrug off its lassitude under the Obama administration. The pro-growth actions of President Trump are having tangible effects on the American economy. Apart from the unemployment figures, the underemployment has also declined. US home prices have perked up, consumer credit has increased, and consumer spending has also looked up. The trade deficit has narrowed but only slightly. One of the indicators of the state of the US economy is the US dollar which has increased during the last four weeks. These indicators show that Trump's actions have begun to perk up the US economy and growth is improving.

Don't miss our page on Facebook!