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More jobs, higher prices: restaurants show U.S. economy’s bite
What does a nice meal out say about the U.S. economy?
Quite a lot, as it turns out, and the Federal Reserve is taking note, especially after a whopping 40,200 food service and drinking establishment jobs were created last month. That represented nearly 17 percent of overall job gains reported by the Labor Department on Friday.
Spending at restaurants is also surging and prices are up, reflecting strength in the services sector, which accounts for more than 80 percent of U.S. economic output.
If the $16 trillion American economy keeps adding jobs and the recovery from the 2007-2009 financial crisis takes hold more broadly, it will allow the U.S. central bank to make good on its plan to lift interest rates gradually this year. Read More…