(Finance) – Despite the adjustment of the manufacturing sector after the recent strikes, the job growth in the United States rose more than expected in December, driven by the public sector, with economists saying Intesa Sanpaolo who talk about “end of year surprise“.
In December i new non-agricultural workers they increased by 216 thousand, surprising expectations on the upside. The reading remains just below the average for the year (225 thousand) and the data for the previous two months have been revised downwards overall by 71 thousand, bringing the quarterly average to 165 thousand units (on levels observed before the crisis pandemic).
“Regarding the Fed, from the minutes of the December meeting the overall message of the committee remains accommodative and dependent on data, with no intention of anticipating a rate cut, given that the labor market still remains tense (despite the progressive rebalancing between demand and offer) and the reduced unemployment rate – we read in a note from the Intesa Studies and Research Department – I today’s data suggests that there is still a long way to go to achieve the cooling of employment and wages desired by the Fed”.
Furthermore, the Richmond Barkin Fed governor, known for its stricter stance, stated on January 3, 2024 that there is no “autopilot engaged” and that a soft landing is not guaranteed. He stressed that inflation could remain above target and that data on growth and inflation will be crucial for future monetary policy decisions.
“In this context of uncertainty, despite the market, we therefore do not expect any rate cuts before September 2024“, write the economists Mario Di Marcantonio and Simone Zava.
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