The US jobs report and inflation numbers for July had the perfect balance of being good enough to support a strong economic recovery in the US, while lacking in the areas that the Fed is most concerned with right now, including wage growth. From a markets standpoint, we couldn’t ask for more. No one wants the economy to suffer in order for the stock markets to keep pushing higher but the Fed, in remaining extremely dovish regardless of the improvement being seen in many areas, has created a situation whereby the data can be great in most areas but we don’t have to worry about rate hikes, which means stocks can continue to push higher.
The numbers themselves were a little mixed but there were a lot of good points to the data that shouldn’t be overlooked. For example, the unemployment rate rose but so did the participation rate for the first time since March. While the rise was only marginal, it’s still potentially a sign that people are returning to the work force as they see the jobs market improving. In terms of job creation, only 209,000 jobs were created in July, which is lower than expected, but last month’s figure was revised up by 10,000 and this month’s was far from poor. It’s also the sixth consecutive month that more than 200,000 jobs have been created which is not something to be sniffed at.
The numbers themselves were a little mixed but there were a lot of good points to the data that shouldn’t be overlooked. For example, the unemployment rate rose but so did the participation rate for the first time since March. While the rise was only marginal, it’s still potentially a sign that people are returning to the work force as they see the jobs market improving. In terms of job creation, only 209,000 jobs were created in July, which is lower than expected, but last month’s figure was revised up by 10,000 and this month’s was far from poor. It’s also the sixth consecutive month that more than 200,000 jobs have been created which is not something to be sniffed at.
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