US labour market report disappoints

The US September labour market report was a big disappointment. Much stronger numbers are required in the coming months for a first rate hike in December to remain in play.

The US labour market report disappointed in September. Non-farm payrolls came in at 142k - significantly below the general expectations around 200k. On top of the September disappointment, both the August and July numbers were revised down significantly.

"We had expected an upward revision to the August number. The unemployment rate remained unchanged at 5.1% in line with expectations, while average hourly earnings were flat on the month against an upward revised August number", says Nordea Bank.

All in all, a disappointing labour market report that lends clear support to the doves at the FOMC. Much stronger numbers are required in the October and November reports for a first Fed hike in December to remain in play.