The economy is showing a definite sign of strengthening with a report that US companies added 216,000 jobs in the month of November. That figure is the most since June of this year.
The company ADP, a provider of payrolls, said that the majority of the uptick was in service jobs, such as retail sales, hotels and restaurants, and also in higher paid professional service jobs. Manufacturing however lost 10,000 jobs in the same period while construction companies added 2,000.
Other signs of an expanding economy included a growth rate of 3.2 percent annually during the third quarter, much higher than the 1.1 percent during the first two quarters of 2016. Americans also purchased homes at a faster rate in ten years during the month of October. Consumer confidence has reached a nine-year pinnacle.
Another important indicator is home prices. After over eight years they have finally reached their “before bubble-era” prices, which contributes to the increase in household wealth. There are also hints that wages are going up after years of snail-paced growth.
“Overall, consumers are feeling confident and are driving the strong performance we currently see in the job market,” Ahu Yildirmaz, head of the ADP Research Institute, said.