Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 11 March 2017

US interest rates to rise

Up they go...

There were broad-based gains in US employment with nonfarm payrolls increasing by +235,000 in February, while the January result was revised up by +11,000 to +238,000. 


It's been a long time now since the US economy was in recession, and February marked a record 77 months of unbroken employment growth. 


It's deliberately unsophisticated and takes no account of jobs quality, but to look through the noise a bit I like to look at the average job gains per month over the calendar years. 

It's early days in 2017, but employment growth is off to a cracking start, while over the past three months job gains have averaged +209,000. 


The unemployment rate ticked back down a notch to 4.7 per cent in February.


Average hourly earnings came in a bit below expectations in increasing by 6 cents to $26.09, but over the year are a healthy enough $0.71 or +2.8 per cent higher. 


Plenty more detail in the body of the report, but in short there's not a lot to see here that will stop interest rates from rising in 2017.