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U.S. jobs data leaves Fed focused on inflation
ETF Trends points to 29,000 jobs added in September versus expectations of 90,000, while citing a 66,000 six month average for employment growth and revised July and August figures.
ETF Trends argues that, despite a weaker than expected September jobs report, the U.S. labor market remains healthy enough for the Federal Reserve to stay focused on reducing inflation. The outlet notes that the economy added just 29,000 jobs in September versus an expected 90,000 and that job growth for July and August was revised lower.
The analysis also highlights that employment growth averaged 66,000 over the past six months, and it says this stability would reduce concerns that inflation fighting efforts could harm employment. It adds that a gradual slowdown in job growth could help bring inflation down by trimming consumer demand modestly without damaging corporate earnings.
ETF Trends further points to economic activity signs, including August real personal consumption spending rising more than expected, revised second quarter GDP growth of 2.2%, and expected third quarter GDP growth above 3%. It says these indicators suggest the broader economy remains steady, even after the September labor market surprise.