WASHINGTON (MNI) - U.S. employment growth is forecast to maintain steady at 160,000 in August compared with July's 164,000 speed. Low claims and customer confidence are propping up the labour market while weakness in manufacturing and services and a downturn suggest future hiring.
Listed below are key things to see in the launch of Friday:
-Services and Non-Manufacturing Payrolls Losing Momentum. The closing IHS Markit Services Index slowed to 50.7 in August, signaling milder growth in service industry employment.
-Manufacturing Payrolls Probably Soft. According to IHS Markit august mill employment grew at the slowest rate since March 2017.
Similarly, the August ISM Manufacturing PMI contracted to 49.1 and half of those surveyed manufacturing companies reported declines in labour.
The ADP employment report listed a 195,000 August profit following a 142,000 growth in July. The July number was revised down implying sector employment might not be as powerful.
The IHS Markit Flash PMI signaled a downturn in private industry company that was new in August, also job development slowed .
-Past Payroll Data Mixed. Despite a July gain of 165,000 the average for payrolls dropped to some low of 141,000, implying labour is trending down. Average hours worked plummeted in July to a low.
Jobless claims statistics have been low in recent years, signaling strength in employment. Furthermore, the July unemployment rate of 3.7% stayed near the 3.6% rate observed in April and May which has been the lowest since 1969 along with the tight labor market increased y/y hourly earnings to 3.2percent in July by 3.1percent in June.