- Ian Shepherdson of Pantheon Macroeconomics
Hiring in the world's number one economy accelerated, as American employers added the biggest number of workers in almost three years in October, the Bureau of Labor Statistics said, which could potentially bring the Fed closer to raising its interest rates. Non-farm payrolls soared by 321,000, the most since January 2012, while the unemployment rate remained unchanged at 5.8%. Data for September and October were revised to show 44,000 more jobs added than previously reported. November marked the 10th consecutive month that employment growth exceeded 200,000, the longest streak since 1994, and confirmed the US economy is withstanding slowdowns in China and the Euro zone, as well as a recession in Japan. There is evidence the improving labour market conditions start to spur faster wage growth, a key indicator that will determine the timing of the Fed's first rate hike. Average hourly earnings climbed by 9 cents in November, which left them up 2.1% from the previous year, still well below the advance of 3% or more that economists say would make the Fed comfortable raising benchmark overnight rates from all-time low, where they have been since December 2008. A separate data showed the US trade deficit shrank 0.4% to $43.4 billion in October, but came in above the expected $41.2 billion and following an upward revised $43.6 billion gap in September. Exports rose 1.2% to $197.5 billion in October, while imports climbed 0.9% to $241 billion, which is a new record.
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