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8 May 2015
US job growth recovers – BBH
FXStreet (Barcelona) - Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, reviews the US jobs data release, noting that the near-consensus print of 226k increase in April NFP suggests that the country’s job growth scenario is improving.
Key Quotes
“The consensus for a 226k increase in April non-farm payrolls got as close as reasonably possible to the actual 223k increase. The positive news was tempered by the nearly 40k downward revision to the March report (85k down from 126k of the initial estimate).”
“However, the unemployment rate slipped to 5.4% from 5.5% despite the 0.1% increase in the participation rate.”
“Average hourly earnings increase by a meager 0.1% on the month for a 2.3% year-over-year pace.
“The downward revision to March is disappointing. It is not material in terms of new information for investors."
“After the recent trade figures, investors realize that Q1 GDP will likely be revised to show a modest contraction (a little more than 0.1% quarter-over-quarter). The key issue for investors is whether that Q1 performance is representative or not.“
Key Quotes
“The consensus for a 226k increase in April non-farm payrolls got as close as reasonably possible to the actual 223k increase. The positive news was tempered by the nearly 40k downward revision to the March report (85k down from 126k of the initial estimate).”
“However, the unemployment rate slipped to 5.4% from 5.5% despite the 0.1% increase in the participation rate.”
“Average hourly earnings increase by a meager 0.1% on the month for a 2.3% year-over-year pace.
“The downward revision to March is disappointing. It is not material in terms of new information for investors."
“After the recent trade figures, investors realize that Q1 GDP will likely be revised to show a modest contraction (a little more than 0.1% quarter-over-quarter). The key issue for investors is whether that Q1 performance is representative or not.“