Monthly net new job additions are declining after months of large-sized rate hikes and withdrawal of the liquidity by Fed. However, labor market conditions remain tight as businesses continue to add jobs at a slower but brisk pace.
Weekly initial jobless claims rose less than expected in the week ending September 24. The smaller-than-expected rise in claims signaled the strength in the labor market and another reason for the Fed to continue hiking rates.
Retail sales advanced after the fall in gasoline price allowed consumers to increase purchases of food and beverages and other items. Motor vehicle sales rose.
Industrial production fell unexpectedly in August. The index for durable goods manufacturing was unchanged and for nondurable manufacturing increased 0.2%, and for other manufacturing eased 0.1%.
U.S. trade deficit eased 13% in August to $70.6 billion but rose 29% or $136.6 billion from a year ago. In a familiar trade pattern, the U.S. recorded large deficits with China, European Union, Mexico, Vietnam and Canada.
Non-farm payrolls rose at a slower pace in August and the job additions were led by professional services and healthcare sectors. Jobless rate increased after labor force participation rate rose to 62.4%.
