Big afternoon of the month as U.S. non-farm payroll data looms

The markets are relatively subdued this morning waiting patiently for this afternoon’s September US non-farm payroll data at 1.30pm GMT. Expectations are for a gain of 100,000- 110,000 jobs with the unemployment rate at 8.2%.

The August data from the US Bureau of Labor Statistics showed total nonfarm payroll employment rose by 96,000 and the unemployment rate nudged down to 8.1%. Employment increased in food services and drinking places, in professional and technical services, and in health care. 

The weakness in the August numbers was one of the factors considered by the Federal Reserve FOMC in throwing further open ended quantitative easing (the so called “QE infinity”) into the mix to boost the economy. At this stage in the economic cycle, gains of 200-250,000 in the non-farm payroll data would be expected, but an average of just 87,000 jobs has been added in each of the past five months, down from 226,000 in the first three months of 2012. US employment is still down over 4 million from its peak before the 2008 financial crisis driven recession.

Another interesting Presidential debate between Obama & Romney will loom on the back of these numbers!!

Contrarian investor UK