Pete Wargent blogspot

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

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Saturday, 9 July 2016

US jobs are back

US payrolls rebound

The US economy added a whopping +287,000 jobs in June, easily beating market expectations of +175,000.

A bit worryingly, the May result was revised down from +38,000 to just +11,000, but April was revised up from +123,000 to +144,000.

Average gains for the past three months improved and now sit just above +147,300.

Total payrolls are now 2.4 million higher than one year ago.

The average monthly payrolls gain in 2016 is now +171,500, some way down from the rampant average gains in 2014 of +259,600.

The unemployment rate ticked back up from 4.7 per cent to 4.9 per cent (market analysts had expected 4.8 per cent).

Average hourly earnings were up by 2 cents to $25.65, and are up by $0.65 or 2.6 per cent over the year to June. Wages growth may now just be picking up, according to Yellen. 

Overall the market still doesn't expect to see the US hike interest rates again this year after the dire May result - priced at about a one in four chance - while the cash rate is expected to be cut again in Australia. 

A better result.