Jobs Report: 'No Rate Hike for You' - Gold Concurs

No Rate Hike for You

Here's Chris Barraud's quick analysis of the Unemployment numbers this morning. He is one of the people that MarketSlant follows closely

 

Here are the rest of his comments on the report as tweeted just now:

 (1) | Nonfarm payrolls rose 227K in December (up 70K compared to December) and above estimates of 180K. (2) | On the manufacturing front, payrolls increased by 5K while the index of aggregate weekly hours soared 0.3% MoM... (3) | ...which implies a ⬆ in the January Manufacturing Production (February 15th). (4) | Wages growth slowed on a monthly basis, ⬆ 0.1% (vs 0.3%e) and bringing the annual rate down to 2.5% from 2.8% in December. (5) | The stabilization in the workweek (34.4) combined with the ⬆ in payrolls led aggregate hours worked (a proxy for GDP growth)... (6) | ...to increase by 0.16% MoM (vs +0.40% prior). (7) | The unemployment rate, unrounded, ⬆ to 4.780% (vs 4.716% prior) because of a ⬆ in the participation rate (62.9% vs 62.7% prior) (8) | The underemployment rate rose to 9.4% (highest since Oct. 2016) as the... (9) | ...the number of Americans working part-time for economic reasons increased by 242K. (10) | All in all, the report looks somehow disappointing and offers room for policy makers to wait before raising rates.

 

Gold Concurs

interactive chart here

 

About Chris:

Christophe Barraud has been ranked "Top forecaster for the US Economy" for the last 5 years. Recommended to follow

@C_Barraud

Chief Economist & Strategist at Market Securities | PhD | Bloomberg Top Forecaster of the US Economy [2012-2016] & Eurozone [2015-2016] 

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