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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (22863)	2/4/2005 9:14:05 AM
From: russwinter	Respond to of 116555

More great Bubble news for Bully, as he don't need no stinkin' job.

To: mishedlo who wrote (22863)	2/4/2005 9:15:25 AM
From: zonder	Respond to of 116555

US Employment Growth Disappoints - Again ............................................Jan...................Dec Nonfarm payrolls..............146k...................133k (r from 157k) Unemployment rate..............5.2%...................5.4% Ave. Hourly Earnings..............0.2%...................0.1% US employment growth once again failed to deliver the strong profile that many analysts have been anticipating. Across the board, employment growth was positive - with the exception of manufacturing which reflected its secular trend with a contraction of 25k.Only one month in the last six has recorded over 200k growth in overall payrolls. This tells us that the economy still has a substantial degree of slack in the labour market. At the same time earnings growth remains moderate - the 0.2% growth in January, following 0.1% in the previous month. In the more dynamic part of the last cycle (second half of the 1990s) nonfarm payrolls were growing on average above 220k per month. There is some way to go to approach that rate. Conclusion: Does the Fed need to accelerate or decelerate the pace of interest rate increases as a result of this evidence from the labour market? No - we do not believe so. The data is strong enough to encourage a gradual move towards a neutral rate but not strong enough to prompt any aggression in the pace of tightening.