US NFP: Something for everyone – ANZ

According to analysts at ANZ, at face value, the October US labour market report was on the soft side of expectations as non-farm payrolls rose 261k, against expectations for a 310k gain.

Key Quotes

“However, that needs to be seen in the context of a 90k upward revision to the previous two months. The unemployment rate also fell to 4.1%, and the broader U-6 measure fell to 7.9% – the lowest since December 2006. Average hourly earnings, which were unchanged m/m, and up 2.4% y/y, undershot expectations, although would have been distorted by hurricane effects. Separately, the October nonmanufacturing ISM rose to 60.1, with new orders (62.8) and employment (57.5) also strong. It certainly points to a strong start to Q4 activity.”