Economics
U.S. Companies Have Enough Confidence to Hire, If Not Invest
- Service industries more dependent on workers than equipment
- Jobless rate held at 4.9% last month as labor force swelled
U.S. Jobs Data Keeps Analysts Guessing on Projections
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American employers were optimistic enough in the nation’s economic prospects to hire an unexpectedly large number of workers in July for a second month. So far, the same can’t be said for their inclination to invest in updating their operations.
The 255,000 gain in payrolls exceeded all forecasts of economists surveyed by Bloomberg and followed a 292,000 increase in June, according to Labor Department data Friday. This came on the heels of a disappointingly soft report on gross domestic product last week that showed business spending on buildings and equipment dropped in the second quarter for a third consecutive time.