US Jobs Report, Economic Data Quite Strong >
The latest US jobs report was very strong, with job gains of +225k – way above expectations of +175k &ndash and positive revisions to the prior two months. Learn more from Dan North, Chief Economist for Euler Hermes North America.
US: Federal Reserve Holds
As expected The Federal Reserve held interest rates steady at its Wednesday meeting. In a unanimous decision the Federal Open Market Committee (FOMC) voted to maintain the overnight Federal Funds Rate at between 1.5% and 1.75%.
The North Report: 2019 and 2020
Despite some bumps along the way, 2019 was a solid year all around for the economy, for business, for the consumer, and for the financial markets. For 2020 however, while we expect positive growth, it will be markedly slower. We may even experience a quarter of flat or negative growth, but the odds of a recession are waning.
Trends in Construction and Surety to Watch for in 2020
The surety industry remains robust. There appears to be abundant capacity for all segments – small to medium contractors, mega-contractors, commercial surety and international surety. While 2019 saw some smaller players exit the market (and 2020 may see one larger player exit) those have little impact on the overall capacity available.
Bad Faith Does Not Apply to the Surety Line of Business
Although surety is a type of insurance, it is far different from a traditional insurance policy and must be viewed differently. For example, the facts and circumstances that support a claim of bad faith against an insurance company writing an insurance policy do not apply in the case of a surety bond.