However, unemployment fell to 3.6%, spelling more rate hikes
07 July 2023
US non-farm employment change for the month of June showed an addition of 209k to the workforce, just under most forecasts of a 230k gain. However, this number is probably not what the Federal Reserve (Fed) wants to keep seeing if it wants to continue pausing rate hikes. Average hourly earnings were also up more than expected, rising 0.4% on the month and showing a 4.4% advance year-on-year. The broader unemployment rate fell to 3.6%. The US economy looks far from softening. This means hikes are back on the agenda and we should expect the Fed to raise rates later this month.
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The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is not an indicator for the current or future development.