You are here: Home - Investing -

US payrolls soar past expectations to ease recession fears

0
Written by:
03/08/2012
July US employment figures have come in well ahead of economists’ estimates, helping stave off fears of a new US recession, despite a small rise in the unemployment rate to 8.3%.
US payrolls soar past expectations to ease recession fears

The US added 163,000 jobs in July, according to the US Bureau of Labor Statistics, easily beating expectations of a 100,000 increase.

But that figure, the highest number in five months, was accompanied by a rise in the unemployment rate from 8.2% to 8.3%, while May and June’s disappointing employment numbers were revised down by a further 6,000 in total.

The rate has been stuck above 8% for the past two years, stifling hopes of a US economy recovery and putting pressure on president Barack Obama as he prepares for his re-election bid this November.

Equities added to earlier gains in response to the headline figures, with the FTSE 100 standing up 1.9% at 5,769, and S&P 500 futures pointing to a 1% rise to 1,379. French and German indices stood up by over 2% each, recovering ground lost yesterday.

Capital Economics’ chief US economist Paul Ashworth said the jobs gains, while promising, are not enough to rule out a third round of quantitative easing next month.

“July’s 163,000 gain in payrolls is obviously a vast improvement on what we’ve seen over the past few months. But equally it is still well short of the 250,000+ gains we were seeing at the start of this year.

“It also isn’t strong enough to drive the unemployment rate lower, which is what the Fed really wants to see. So, on balance, we doubt this would be enough to persuade the Fed to hold fire in September,” he said.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2196618-screen-numbers-flare
FTSE back near 3-month high as ECB worries fade

The FTSE 100 has added 1.4% in early trading as investors consign yesterday’s ECB disappointment to the past and await...

Close