This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
There were 142,000 jobs added in August, a significant drop from the number created in preceding months. The reaction was a broadly negative one, with equity indices unsettled by the idea that US growth was not as strong as previously thought, while also being worried that the number was not bad enough to prompt any reassessment of monetary policy by the Federal Reserve.
However, there are reasons for optimism. August is often a weak month, with employers declining to hire during a month that is traditionally slower for businesses. Meanwhile, average monthly non-farm payrolls are still above the 200,000 mark, which points to economic growth in the US that is still reasonably solid.