This Week In The Economy: Weaker Than Expected Jobs Report, Slowing Economic Activity, Inflation To Ease Further In Coming Months

Welcome to a regular snapshot review of U.S. and international economic news that aims to 1) provide a window into the challenges and decisions facing businesses today, 2) determine the direction of economic policy — such as the speed at which central banks decide to raise interest rates, and 3) assess what the impact will be for consumers.

U.S. Economy Adds Less Jobs Than Expected In August

The Bureau of Labor Statistics reported this week that U.S. employers only added 142,000 jobs last month, compared to expectations for ~160,000, while the number of jobs created in June and July combined was revised lower.

The unemployment rate ticked down slightly to 4.2% in August (compared to 3.8% a year ago) from 4.3% the previous month, although that was mainly due to the 91,000 who left the labor force last month.

The change in total nonfarm payroll employment for June was revised down by 61,000, from…