US NFP: Data consistent with 2% growth and a Fed move in December - Wells Fargo

According to analysts from Wells Fargo, today’s US employment report reflects that job growth remains consistent with 2% growth and a Federal Reserve move in December.

Key Quotes:

“Overall job growth in July remained solid at 255,000 and is up an average of 190,000 over the past three months. This pace supports continued gains in consumer spending and housing, which should help sustain moderate economic growth at 2 percent.”

“Manufacturing remains relatively weak. The weakness in manufacturing is consistent with the moderation in the global economy and the strength in the dollar which together weigh on exported goods.”

“One sign of tightening in the labor market is the gradual pick-up in average hourly earnings with the unemployment rate near estimates of full employment.”

“We expect the Fed to remain on hold over the next few meetings, but this report supports our call for a December rate increase. While the trend in job growth has slowed over the past year, it remains sufficient in putting downward pressure on the unemployment rate. With the participation rate more stable and average hourly wages strengthening, the Fed can be more assured the labor market is at full employment.”