Investors expect stronger U.S. job growth in September as a wave of declining Covid-19 infections has driven demand for the service.
The employment report to be published by the Department of Labor tonight is projected to increase by 500,000 workers last month and the unemployment rate will drop to 5.1% from 5.2% recorded previously.
In September, investors were disappointed with the unexpected job additions, with only 235,000 jobs recorded in August after an increase of 943,000 in July.
With the Covid-19 situation easing, investors are now expecting NFP growth to return to strong and boost confidence for the Federal Reserve (Fed) to start doing stimulus cuts this year.
Revealing a series of data published this month, the employment component in U.S. services is down slightly, but the U.S. manufacturing sector and private ADP are showing stronger -than -expected readings.
While the U.S. consumer sentiment index of the University of Michigan survey also jumped last month, and the 4 -week average of unemployment claims was lower in September than in August.
Referring to these overall encouraging data, it further strengthens market expectations to see the NFP employment report strengthen again in September.
