The U.S. economy added 156,000 non-farm payroll jobs in August, missing the consensus estimate of 180,000 from briefing.com, while the U.S. unemployment rate rose slightly to 4.4 percent from 4.3 percent, according to the Bureau of Labor Statistics.
The strongest job gains in August occurred in manufacturing (+ 36,000) and construction (28,000).
Job increases have averaged 185,000 per month during the past 3 months.
The job numbers for July and June were revised lower by 41,000.
June was revised lower from 231,000 to 210,000 while July was revised lower from 209,000 to 189,000.
Average hourly earnings increased by 3 cents to $26.39, after rising by 9 cents in July.
During the past 12 months, average hourly earnings have increased by 65 cents, or 2.5 percent.
The average workweek declined by 0.1 hour to 34.4 hours in August.
On Wednesday private payroll processor ADP reported the U.S. economy added 237,000 private sector jobs in August, beating market expectations of 183,000, according to a consensus estimate from briefing.com, led by solid gains in the goods producing sector.
“In August, the goods-producing sector saw the best performance in months with solid increases in both construction and manufacturing,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute in a released statement.
“Additionally, the trade industry pulled ahead to lead job gains across all industries, adding the most jobs it has seen since the end of 2016. This could be an industry to watch as consumer spending and wage growth improves” Yildirmaz added.
With lukewarm inflation data, the market isn’t pricing in an interest rate hike during the Fed’s next 2 day monetary policy meeting that concludes on September 20th.
According to CME’s Fed watch tool, the probability that rates will remain steady with the federal funds between 1.00-1.25 percent currently stands at 98.6 percent.
However, the probability of an interest rate hike of .25 percent basis points during the Fed’s December 13th meeting rises to 31.3 percent with a 67.1 percent probability that rates will remain steady.
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