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Fast Comment USUS April labour market data a mixed bag

  1. US April labour market data a mixed bag
  2. Employment growth slowing slightly
  3. Market reaction muted - Fed outlook unchanged
US April labour market data a mixed bag
Employment grew by 164,000 persons between March and April, somewhat softer than the Bloomberg consensus expectation of 193,000. However, including the 30,000 revision of the previous two months, the level of employment was basically in line. Unemployment fell to 3.9 percent (from 4.1 percent) and was lower than expectations of 4.0 percent. Wage growth grew by a modest 0.1 percent, which put the yearly rate at 2.6 percent, a slight deceleration from 2.7 percent in March.
Employment growth slowing slightly
The outcome in employment over the last two months is slightly weaker than the average for the past year. However, there is nothing to suggest any significant deceleration in US employment growth at the moment. Employment growth at the current pace is likely to fuel a further decline in unemployment, and we expect the unemployment rate to decline to 3.7 percent during the second half of the year.
Market reaction muted - Fed outlook unchanged
The USD weakened slightly on the numbers and short-term US rates are also down a tad. The Fed outlook should not be affected, however. We continue to expect the Fed to hike at each press conference meeting this year.

Disclaimer

Claes Måhlén

Chief Strategist

Fixed Income

clma02@handelsbanken.se

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