US jobs growth stalls
US nonfarm payrolls increased by far less than expected in August, in rising by just +22,000.
Revisions to previous months clipped off another -21,000 from payrolls, with manufacturing employment falling by -78,000 over the past year.
The unemployment rate rose to 4.3 per cent, and other measures of slack were also looser.
Average hourly earnings over the year also increased by less than expected, up +3.7 per cent.
Overall, this was a weaker than expected result, which sets up the Federal Reserve to cut interest rates by 25 basis points in September, with markets even pricing in some prospect of a 50 basis points cut (albeit less likely).
The US 2-year Treasury yield fell to a 3-year low at around 3½ per cent on the release of the weak figures.
Sydney property to boom next
Auction clearance rates in Sydney have increased of late to levels typically associated with a 25 per cent property price boom.
Shane Oliver maps the correlation between Sydney's auction clearance rates and home price growth below.
The silver lining for the economy is that if unit prices rise, then construction will also lift henceforth.
CBRE reported this week that only 60,000 apartments per year are expected to be built in Australia, versus a requirement for 75,000 per annum between now and 2030 to meet demand and population growth.
As such, vacancy rates are expected to tighten for the next 5 years.
It is estimated that the cost of renting a 2-bedroom apartment could rise to
$1,000 per week.
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