Rick Rieder, BlackRock’s Global Chief Investment Officer of Fixed Income, said on August 7 that July’s payroll contraction reflected companies becoming more productive rather than economic weakness. Nonfarm payrolls fell by 23,000 in July, a sharp reversal from June’s 57,000 gain, itself below expectations of roughly 83,000. According to BlackRock’s analysis, AI-linked activities contributed nearly 30% to real US GDP growth over the past three years. The firm maintains its forecast of roughly 6% nominal GDP growth, while the unemployment rate steadied at around 4.1%.
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