It seems economists underestimated the pain the US economy is currently in.  They projected job losses in August of around 75000, but as it turns out the number is closer to 85000.  This brings the unemployment rate in the US to 6.1%, its highest level in 5 years.

Now it is very easy to get caught up in talk of the economy as a whole, but sometimes its worth taking a step back and thinking about what those numbers really mean.  In real terms, it means that in August alone nearly 85000 families lost either their entire source of income, or a part of it.  Now that translates into a lower standard of living, which implies less spending, in turn less revenue for certain companies.  And so the cycle continues.  Let’s hope the care packages the US government is sending its economy is going to be enough.

As for South Africa, seems our recession fears are fading, even in the shadow of huge power cuts (which means output in our mines are cut, big time.)  Our manufacturing output has been decreasing significantly though, which is a sign of worry, along with the declining housing and vehicle markets.

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