Nov 13, 201408:06 AMOpen Mic
Send us your blog for consideration!
Market and economic update: Divergent paths being taken to economic growth
(page 1 of 2)
We believe economic data indicate the U.S. economy remains on solid footing. U.S. nonfarm payrolls climbed an additional 214,000 jobs in October, and the unemployment rate dropped to 5.8%. Steady jobs growth may eventually support wage gains, which have averaged around 2% year-over-year growth for the past several months.
The potential for Federal Reserve interest rate increases remains linked to gains in the U.S. jobs market, especially improving wage growth. For now, we expect slow and steady improvement in the jobs market, believe the unemployment rate is unlikely to reach 5.5% until well into 2015, and anticipate slow but steady improvements in wage growth.
Global economic activity has diverged over the past year, and October purchasing manager index (PMI) surveys indicate the world economies remain on separate paths. Data for the United States, Japan, and United Kingdom remain relatively strong. Eurozone PMI data indicate the region continues to suffer from economic malaise, although economic activity continues at a very slow pace.