US labour market reports

A range of US labour market data was released last week but it was distorted by the hurricanes in September and October. Only 12 000 jobs were created in October – way below the 100 000 that the market expected, but the response rate to the survey was low. The unemployment rate remained steady at 4.1%, showing the labour market remains quite robust. Q3 GDP showed the US economy grew 2.8% y/y, better than the 2.6% the market expected, with strong consumer spending. While another 25 bps interest rate cut is expected later this month, the outcome of the presidential election will raise questions over the longer-term trajectory of interest rate cuts. Click here to listen to the podcast