After the Fed pointed to strength in the labor market, the September employment report came in weaker than expected. The non-farm payroll sector came in at 142,000 while low-end estimates predicted a report of 180,000.
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Average hourly earnings also came in below the low-end estimate with an unchanged reading. Labor participation fell 2 tenths to a nearly 40-year low. September's labor participation and the increase of jobless claims in the final week of September signal a shrinking labor market.
Existing home sales fell 1.4 percent in August, possibly indicating a stagnant existing home sales index in the coming months. Three of four regions showed declines, led by the Northeast at 5.6 percent. The decline in existing home sales signals a lack of supply, though new home sales and construction are showing strength.
This week in the economy:
- After last week's mortgage market surge following the FOMC's decision to wait on a federal funds rate hike, the purchase index of MBA Mortgage Applications fell 6 percent. The refinance index fell 8 percent in the week.
- Initial Jobless Claims increased by 10,000 in the September 26 week to a higher-than-expected 277,000. The 4-week average, though, is down 5,000 from the month-ago comparison.
- Consumer Confidence was expected to fall in September with stock market losses, but confidence increased 7 points to 103 for the month, 3 points ahead of high-end estimates.
What's on the economic calendar for the week of October 5, 2015:
Wednesday: MBA Mortgage Applications and Gallup U.S. Job Creation Index
Thursday: Jobless Claims and FOMC Minutes
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