US: Employment data consistent with growth - Nomura

Analysts at Nomura note that the US nonfarm payroll employment increased 134k in September, below expectations (Nomura: 180k, Consensus: 185k), as weather effects may have partly held down payroll growth.

Key Quotes

“Average hourly earnings increased 0.3% m-o-m (0.29%) with slightly negative revisions to August as the y-o-y rate ticked down 0.1pp to 2.8% due to base effects.”

“The unemployment rate declined 0.2pp to 3.7% as household employment increased strongly after a weak increase last month. Despite the downside miss, report remains consistent with an economy growing at roughly 3% and operating at full employment, keeping the current trajectory of Fed policy unchanged.”