Read the highlights of this week’s commentary from Helios:
- US job growth surged in September, with payrolls rising by 254,000, the most in six months, while the unemployment rate dropped to 4.1%. Wage growth accelerated to 4% annually, easing concerns about labor market weakness and potentially reducing the likelihood of a significant Fed rate cut.
- August’s JOLTS report showed a higher-than-expected rise in job openings, indicating modest growth in labor demand and easing downside risks to the labor market. Despite the uptick in job openings, the ratio of available jobs to unemployed workers remains below pre-pandemic levels.
- The US services sector expanded in September at the fastest pace since February 2023, with the ISM services index rising to 54.9, exceeding all forecasts. The rise was driven by a surge in new orders and stronger business activity. The ISM manufacturing index remained unchanged at 47.2 in September. However, the underlying data pointed to potential softening ahead.
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