Press comment: US jobs data shows resilience remains in the economy
If you are covering the US nonfarm payrolls data released today please find the below commentary from Hinesh Patel, portfolio manager at Quilter Investors:
“The market took a sigh of relief following the US jobs data published today. The payroll numbers were not the disaster that had been foreshadowed by the Institute of Supply Management surveys, at least not yet.
“Employment gains were broad-based across sectors with Retail and Manufacturing being the outliers. All told, the unemployment rate dropped further to a fresh secular low – and the underemployment rate dropped markedly showing a degree of resilience in September. Furthermore, hours worked per employee ticked higher and the August print was revised some 30k higher. The only softer element was the lower-than forecast average hourly earnings.
“The probability of a rate cut from the Fed in October moved from 86.5% on Thursday to 76% early on Friday afternoon, so it would remain a shock if the Fed was not to cut rates later this month. However, this jump down in probability highlights just how hypersensitive markets are to macro data just now as investors remain vigilant. The overall outlook is still weak – but this seems purely sentiment driven rather than a focus on the fundamentals. For now the hard employment data shows there is resilience in the US economy.”
Notes to Editors:
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