Weekly Economic Review: Employment Growth Slows in September

Posted by Laine Smith on 10/8/16 10:00 AM

Topics: Economy

The ADP Employment Report released on Wednesday called for significant slowing in employment growth for the month of September. Friday’s Employment Situation report confirmed ADP’s estimates.

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The economy added 156,000 jobs in September, barely meeting low-end expectations. Average hourly earnings increased by only 0.2 percent, also at the low end of expectations. Year-over-year the hourly earnings rate is up 2.6 percent. Positives in the report included the labor participation rate, which increased to 62.9 percent. The workweek also increased to 34.4 hours from 34.3 hours. 

The Gallup US Job Creation Index, which is comprised from employees’ reports of hiring at their place of employment, held firm for the fifth month straight in September at plus 33. This is the highest scored recorded since Gallup started recording this metric in 2008, according to Bloomberg.

This week in the economy:

  • The 30-year fixed-rate mortgage averaged 3.42 percent in the October 6 week according to Freddie Mac.
  • Last week’s purchase application index of MBA Mortgage Applications fell by only 0.1 percent from the week prior but dropped a sharp 14 percent year-over-year. Refinance applications increased 5.0 week-over-week.
  • Initial Jobless Claims fell yet again by 5,000 in the week of October 1. Initial claims fell below 250,000 for the second time in 2016.
  • The Bloomberg Consumer Comfort Index fell 2-tenths of a point to 41.4 in the week of October 2.
  • According to the Gallup US Consumer Spending Measure report, Americans’ reported a daily spending average of $91 for the second straight month. This is the highest average for the month since 2008.
  • Consumer credit boomed in August to $25.9 billion, the strongest gain since September 2015. Revolving credit increased by $5.6 billion in the month to the third highest gain of the year.

What’s on economic calendar for the week of October 10, 2016:

  • Monday – Labor Market Conditions Index
  • Wednesday – MBA Mortgage Applications, JOLTS
  • Thursday – Jobless Claims, Bloomberg Consumer Comfort Index
  • Friday – Retail Sales, Consumer Sentiment

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