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Copper Journal's Gross Likes What He Sees in Recent Unemployment Report

June 4, 2018
John Gross, publisher of The Copper Journal, gives his take on why he thinks the economic expansion still has legs.

 John Gross, publisher of The Copper Journal, is bullish on the economy, Here's what he has to stay about the recent economic data on employment and housing starts:

"While the world argues and debates about trade, tariffs, and protectionism, and the damaging impact it will have on everyone involved, we would rather focus on something more positive. That something more positive is our unemployment rate that hit an eighteen year low of 3.8% during May, a level seen only three times over the past 48 years.

When take the long-term view, there’s an inverse relationship between housing starts and the unemployment rate, two critically important sectors of our economy. Looking at the past 15 years specifically, we see that housing starts peaked at 2.27 million homes at a seasonally adjusted annual rate in Jan. 2006, but subsequently fell to just 478,000 in April 2009, down 1.795 million, or almost 80%, as the economic crisis took its toll.

From that low point, starts rose to a recent high of 1.336 million in March, up 858,000 from the low, but this is still less than half of the loss that occurred. So, with more people working and interest rates quite low by any historical measure, we can only conclude that our economy has considerably more room to run."

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