US: Employment rises less than expected in July - ICICI Bank : Treasury Research

- Non-farm payrolls (NFP) increased by 162K in July 2013, lower than market expectations of an increase of 185K

- Total job addition for May was revised lower to 176K from 195K earlier, while that for June was revised to 188K from 195K

- With the latest print and the revisions, the monthly average for 2013 stood at 192K compared to 180K/ month average in the corresponding period last year

- Private sector, though still the leading contributor to total job gains, increased at a moderate pace compared to the previous months

- Total job addition in the government sector turned positive in July, providing some relief to concerns over the adverse impact of sequestration

- As per the household survey, the unemployment rate fell by 20 bps to 7.4% in July, the lowest level since December 2008

- The July NFP print signaled modest pace of recovery in the US labour market and weighed on bets of an early tapering of asset purchases by the Fed. As a result, the Dollar fell sharply post the data release while US Treasuries and gold surged.

Source : Equity Bulls

Keywords