Go deeper: 5 signs the U.S. economy is in good shape
While other political issues are embroiled in controversy — immigration, trade, and foreign policy, to name a few — the United States' economy seems to be in good shape, causing President Trump to often tout positive economic indicators:
The big picture: Unemployment is dropping, applications for disability benefits are plunging, and millennials are finally moving out on their own. But with the threat of a trade war on the horizon and signs that the economy may be soon slowing, there are worries about how long the boom can last.
The good, per CNBC:
Millennials are moving out: Millennials, the largest generation in the labor force, are leaving the nest and increasingly heading out on their own,
Unemployment is dropping: Last week, the number of people filing for unemployment benefits was at 218,000, below the expected 220,000.
Homebuilding surged: U.S. homebuilding hit its highest level in May since July 2007.
Consumers are optimistic: Consumer sentiment hit its highest level in three months. University of Michigan's chief economist Richard Curtin told CNBS: "Greater certainty about future income and job prospects have become the main drivers of more favorable purchase plans."
Yes, but:
The threat of a trade war between the U.S. and its allies is concerning and some economists fear that prolonged economic retaliation could weaken crucial American alliances.
The Leading Economic Index fell short of expectations in May, after increasing only .2% instead of .4%. Ataman Ozyildirim, director of business cycles and growth research at The Conference Board, told CNBC: "The U.S. LEI still points to solid growth but the current trend, which is moderating, indicates that economic activity is not likely to accelerate."
While homebuilding surged as mentioned above, there was a drop in homebuilding permits for the second month, which "suggested housing market activity will remain moderate."
