September 2010 U.S. Economic Fundamentals
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ADP report shows unexpected drop in U.S. employment
Companies in the U.S. unexpectedly cut workers in August, data from a private report based on payrolls showed.
Employment fell by 10,000, according to figures today from ADP Employer Services. The median estimate of 35 economists surveyed by Bloomberg News called for a gain of 15,000. Forecasts ranged from a decline of 50,000 to a 55,000 increase.
A loss of jobs raising the rsik that consumer spending, the largest part of the economy, will retrench and halt the recovery. A Labor Department report in two days will show companies added 42,000 workers last month, economists projected.
"Growth is likely to remain soft through the rest of 2010, preventing any significant improvement in the labor market," Gus Faucher, director of macroeconomics at Moody`s Economy.com in West Chester, Pennsylvania, said before the report. "Job growth will be soft through the rest of this year but will pick up in 2011."
Over the previous six reports, ADP`s initial figures were closest to the Labor Department`s first estimate of private payrolls in February, when they overestimated the drop in jobs by 2,000. The estimate was least accurate in April, when it underestimated the employment gain by 199,000.
Read the full article here.
Companies in the U.S. unexpectedly cut workers in August, data from a private report based on payrolls showed.
Employment fell by 10,000, according to figures today from ADP Employer Services. The median estimate of 35 economists surveyed by Bloomberg News called for a gain of 15,000. Forecasts ranged from a decline of 50,000 to a 55,000 increase.
A loss of jobs raising the rsik that consumer spending, the largest part of the economy, will retrench and halt the recovery. A Labor Department report in two days will show companies added 42,000 workers last month, economists projected.
"Growth is likely to remain soft through the rest of 2010, preventing any significant improvement in the labor market," Gus Faucher, director of macroeconomics at Moody`s Economy.com in West Chester, Pennsylvania, said before the report. "Job growth will be soft through the rest of this year but will pick up in 2011."
Over the previous six reports, ADP`s initial figures were closest to the Labor Department`s first estimate of private payrolls in February, when they overestimated the drop in jobs by 2,000. The estimate was least accurate in April, when it underestimated the employment gain by 199,000.
Read the full article here.
- Joined
- Mar 24, 2009
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- 16,743
U.S. feds stuck in a zero-rate game
Decision makers at the U.S. Federal Reserve Board find themselves with their hands tied as they prepare to release their latest rate statement tomorrow.
The economy isn`t strong enough for the Fed to begin withdrawing stimulus, through shrinking its balance sheet or raising its benchmark rate, which is at virtually zero. The reality is consumers are opting to pay down debt instead of spending on goods; private-sector job creation is advancing at a snail`s pace; and inflation poses no immediate threat.
But nor is the economy weak enough to contemplate another round of liquidity injections, or so-called quantitative easing, as recent key economic indicators have been stronger than anticipated and reduced the odds of a much-feared double-dip recession.
"The recovery may be slower than many would like, but as Mark Twain wrote, `continuous improvement is better than delayed perfection,` " wrote economists at Toronto-Dominion Bank in their quarterly U.S. outlook.
Read the full article here.
Decision makers at the U.S. Federal Reserve Board find themselves with their hands tied as they prepare to release their latest rate statement tomorrow.
The economy isn`t strong enough for the Fed to begin withdrawing stimulus, through shrinking its balance sheet or raising its benchmark rate, which is at virtually zero. The reality is consumers are opting to pay down debt instead of spending on goods; private-sector job creation is advancing at a snail`s pace; and inflation poses no immediate threat.
But nor is the economy weak enough to contemplate another round of liquidity injections, or so-called quantitative easing, as recent key economic indicators have been stronger than anticipated and reduced the odds of a much-feared double-dip recession.
"The recovery may be slower than many would like, but as Mark Twain wrote, `continuous improvement is better than delayed perfection,` " wrote economists at Toronto-Dominion Bank in their quarterly U.S. outlook.
Read the full article here.
- Joined
- Mar 24, 2009
- Messages
- 16,743
U.S. recovery slowdown a `concern`: Carney
OTTAWA — Bank of Canada governor Mark Carney said Friday the slowdown in the U.S. recovery is of "some concern" to the central bank and whatever unfolds will have a "significant" impact on this country`s economy.
In an interview with U.S. business network CNBC, he said the low level of U.S inflation — due to a debt overhang and slowing growth — may prompt the U.S. Federal Reserve to take further measures, such as another round of asset purchases.
"We will deal with the consequences" of any Fed decision on so-called additional quantitative easing, said Carney, in an interview conducted at the Canadian Museum of Civilization in Gatineau, Que.
"We will adjust monetary policy to Canadian circumstances, but there are limits to the divergence that there can be."
While expressing concern about the tepid pace of U.S. economic growth, he added the central bank is keeping an eye on the record level of household indebtedness — which some analysts have suggested will push the Bank of Canada to continue raising rates even in the face of an economic slowdown.
Read the full article here.
OTTAWA — Bank of Canada governor Mark Carney said Friday the slowdown in the U.S. recovery is of "some concern" to the central bank and whatever unfolds will have a "significant" impact on this country`s economy.
In an interview with U.S. business network CNBC, he said the low level of U.S inflation — due to a debt overhang and slowing growth — may prompt the U.S. Federal Reserve to take further measures, such as another round of asset purchases.
"We will deal with the consequences" of any Fed decision on so-called additional quantitative easing, said Carney, in an interview conducted at the Canadian Museum of Civilization in Gatineau, Que.
"We will adjust monetary policy to Canadian circumstances, but there are limits to the divergence that there can be."
While expressing concern about the tepid pace of U.S. economic growth, he added the central bank is keeping an eye on the record level of household indebtedness — which some analysts have suggested will push the Bank of Canada to continue raising rates even in the face of an economic slowdown.
Read the full article here.