-Moody's Analytics Inc
The Fed's own labour market conditions index recovered last month in line with expectations, marking its highest level of the year thus far. The Labor Market Conditions Index climbed to -0.9 points in April, virtually matching economists' forecast for -1 point, and following an unrevised -2.1 points in March, according to the Fed's Board. The gauge averaged -2.2 points in the first quarter.
Last week's non-farm payrolls report showed the world's biggest economy created the fewest number of jobs in seven months and Americans dropped out of the labour force, casting doubts on whether the Fed will hike interest rates before the end of the year. According to the Labor Department, non-farm payrolls rose by 160,000 jobs last month as construction employment barely climb and the retail sector shed jobs. That was the smallest gain since September and below the first-quarter average job growth of 200,000. Moreover, employers appeared to add 19,000 fewer jobs in February and March than previously estimated. While the unemployment remained unchanged at 5.0% it came at cost of people dropping out of the labour force. The share of Americans participating in the labour force dropped to 62.8% in April from 63.0% in March.
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