Friday, 5 May 2017

Boost for Donald Trump as US jobs growth rebounds

US jobs growth rebounded in April in a boost for Donald Trump after a sluggish start to the year for the world's biggest economy.
America's closely watched nonfarm payrolls figures showed a higher than expected increase of 211,000 in employment numbers, a big upturn after a gain of 79,000 in March.

They appeared to back the argument that weak economic growth in the first quarter was a blip.

Meanwhile, the unemployment rate slipped by a percentage point to 4.4%, its lowest level since May 2007, according to the data from the US Labor Department.

The figures could seal the case for another interest rate rise by the US Federal Reserve next month, despite wage growth remaining moderate.

They appeared to back the Fed's contention that disappointing GDP growth in the first quarter - at an annual pace of 0.7% - was likely to have been "transitory".
The US central bank earlier this week kept its benchmark interest rate on hold and said it expected labour market conditions would "strengthen somewhat further".

It had raised the rate by a quarter of percentage point in March and pencilled in two more increases for this year.

Economists have expressed optimism that the US is strengthening in the current April-June quarter, fuelled by job growth, higher consumer confidence and stock-market records on promises of tax cuts and investment from President Trump.

James Knightley, senior economist at ING Bank, said: "Healthy jobs growth has returned and unemployment has fallen again, offering support to the Federal Reserve's policy of gradually raising rates."

SKY     News.