"Even though confidence is seeping out of the US economy, employers are taking a glass‑half‑full approach and have taken on more staff than expected. While there could be anomalies in this delayed data release, given the chaos of the partial government shutdown, it does indicate that the US economy is continuing to show resilience. This has helped propel the internationally focused FTSE 100 higher in afternoon trade, as prospects for the world's largest economy appear more upbeat."
"While lower‑and middle‑income households are more pessimistic about the economic prospects ahead, wealthier consumers are keeping spending more buoyant, helping with job creation. Investors had been bracing for a disappointing number, but with new hires coming in at 130,000, sharply above consensus forecasts of 70,000 for January, it has dampened hopes slightly of a super‑easy path ahead for interest‑rate cuts."
US non‑farm payrolls increased by 130,000 in January, well above consensus forecasts of 70,000. The stronger hiring data reduces the odds of a straightforward path to interest‑rate cuts this year. Employers appear resilient despite weakening consumer confidence and disruptions from a partial government shutdown that may cause data anomalies. The internationally focused FTSE 100 rose in afternoon trade on improved prospects for the US economy. Lower‑ and middle‑income households expressed more pessimism, while wealthier consumers kept spending relatively buoyant, supporting job creation. A higher interest‑rate environment can lower the value of future earnings and pressure high‑growth firms, producing uneven equity reactions.
Read at London Business News | Londonlovesbusiness.com
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