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US economy adds 196,000 jobs, official figures show



Donald Trump received some good news on the economy as the US jobs market rebounded in March. Employers added 196,000 jobs in the month up sharply from a meagre gain of 33,000 in February.

The latest figures indicate that February’s unexpectedly poor showing was a blip rather than a worrying sign of a slowdown, as some analysts had feared.

Unemployment remained at 3.8 per cent, close to its lowest level in 50 years, while wage growth slowed marginally. Average hourly pay increased 3.2 per cent from a year earlier down from February’s gain of 3.4 per cent.

The US president still faces a number of economic challenges however, not least the negative impact of his trade war with China on many American firms.

Consumers also remain cautious, business investment is slowing and the effects of Mr Trump’s $1.5 trillion (£1.2 trillion) tax cut for businesses and wealthy individuals are wearing off.

Mr Trump said on Thursday that US trade negotiators had agreed “a lot of the most difficult points” on a deal with China but that “we have some ways to go”.

The world’s two largest economies have imposed tariffs on hundreds of billions of dollars of each others’ goods over the past year.

“This is an epic deal, historic – if it happens,” said Mr Trump.

“This is the Grand Daddy of them all and we’ll see if it happens. It’s got a very good chance of happening.”

US economic growth slowed sharply in the last three months of 2018 to just 2.2 per cent from 2.6 per cent. 

The adjustment came after consumer spending, business investment, government spending and housebuilding all came in lower than had previously been predicted.

The Federal Reserve has also downgraded its growth forecast for this year to 2.1 per cent, significantly lower than the 3.2 per cent growth forecast by the White House.

During his State of the Union address in February, Mr Trump received a standing ovation from Republicans when he said: “The US economy is growing almost twice as fast today as when I took office and we are considered far and away the hottest economy anywhere in the world. Not even close.”



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