Fuji Credit Asset Management reports the employment picture in the US continues to improve with 292,000 new jobs created in December.
According to Japan’s Fuji Credit Asset Management US Labor Department has said that jobs growth in the world’s biggest economy surged in December with 292,000 new positions created. The data, released last Friday, saw the dollar strengthen and equities briefly pare this week’s heavy losses as investors speculated that a manufacturing sector-led economic slowdown in the country would likely prove to be temporary.
The Labor Department had further good news on the employment front as it also revised the November and October nonfarm payrolls higher by 20,000 respectively.
“We attribute the better-than-expected read to seasonal factors,” said Fuji Credit Asset Management Head of Corporate Trading, Tony Williams. “The holiday season always sees a high number of temporary and part-time positions created as businesses prepare for what is traditionally their busiest time of year. We definitely don’t see this as a trend that’s set to continue as the year progresses.,” he added.
Fuji Credit Asset Management reiterated its bearish outlook on the US economy warning that the nonfarm payrolls data was at odds with other, leading indicators like consumer confidence, retail sales, home sales and durable goods which portend a marked slowdown in the US economy.
“Unemployment data is a lagging indicator. Employers don’t lay off workers in anticipation of a recession or a slowdown; they lay off workers once a recession has already begun,” explained Williams.
“We prefer to look at data which is known and widely accepted as helping analysts to predict future economic performance rather than that which confirms where an economy has already been,” said Williams.
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