Page 7 - ARUBA TODAY 7 NOV 2015
P. 7
U.S. NEWS A7
Saturday 7 November 2015
US Financial Front:
American hiring surge raises likelihood of Fed rate hike
C. S. RUGABER People attend a job fair at Dolphin Mall in Miami. The federal government issued its October jobs baum, chief economist at
AP Economics Writer Northern Trust. “The two
WASHINGTON (AP) — U.S. report Friday, Nov. 6, 2015. (AP Photo/Wilfredo Lee) summer months that were
hiring swelled in October low now look like the aber-
by the largest amount all meeting is a “live possibil- cession. An increase would of relatively stagnant pay ration.”
year, and unemployment ity.” eventually raise borrowing for many Americans, hour- Manufacturing employ-
dropped another notch to “This data tips the scales costs for mortgages, auto ly wages climbed a solid 9 ment was flat in October,
5 percent, increasing the toward a rate hike in De- loans and business loans. cents in October to $25.20. after two months of job
likelihood that the Federal cember, but more impor- The prospect of higher in- Average pay is up 2.5 per- cuts. The strong dollar and
Reserve will raise interest tantly is a sign that our terest rates initially drove cent in the past year, the faltering growth in China,
rates next month for the economy may have more down financial markets largest annual gain since Europe and Japan have
first time in a decade. punch than we thought,” Thursday, though stock in- 2009. cut into exports of factory
With Americans spend- said Tara Sinclair, chief dexes finished mixed. The The pay gains should fuel goods. Oil and gas drillers
ing more on everything economist for job site In- yield on the benchmark 10- more consumer spending also shed workers as oil
from restaurant meals deed.com. year Treasury note surged in coming months, which, prices stayed low.
and clothing to new cars, The Fed cut the short-term to 2.33 percent from 2.23 in turn, could support fur- But retailers added nearly
employers added an im- rate it controls to a record percent, suggesting that ther hiring. 44,000 jobs last month, a
pressive 271,000 jobs last low of nearly zero in De- investors see a greater like- “These are very strong sign that they expect a
month. cember 2008 to try to stim- lihood of a rate increase. numbers and likely to con- good holiday shopping
That was a strong rebound ulate growth during the re- After a prolonged period tinue,” said Carl Tannen- season. Hotels and restau-
from August and Septem- rants added 41,000, while
ber, when turmoil in Chi- health care providers hired
na and other economies nearly 57,000.
overseas proved a drag Higher-paying sectors also
on the U.S. job market. gained, notably profes-
Unemployment declined sional and business ser-
from 5.1 percent in Sep- vices, which include ar-
tember and is now at its chitects, engineers and
lowest point since April many IT workers. That sec-
2008, just a few months tor added 78,000 positions,
after the Great Recession the most in nearly a year.
began. Matt Friedman, chief ex-
Even before Friday’s re- ecutive of the Wing Zone
port, expectations for a restaurant chain, said he
Fed rate increase in De- thinks lower gas prices are
cember were building. encouraging more peo-
Fed chief Janet Yellen and ple to eat out and boost-
other top officials said this ing sales at his company’s
week that the economy 93 U.S. sites. Company
is generally healthy and sales have grown 6 per-
a move at next month’s cent this year from 2014.q
US consumer credit up a record $28.9 billion in September
MARTIN CRUTSINGER gain of $16 billion in August sumer spending, which the unemployment rate rate turned in during the
AP Economics Writer and pushed total consum- accounts for 70 percent down to a seven-year low April-June period.
WASHINGTON (AP) — er borrowing to an all-time of economic activity, will of 5 percent. Part of that weakness re-
U.S. consumer borrow- high of $3.5 trillion. remain strong in coming Economists are looking for flected global economic
ing jumped by a record The big September gain months. A healthy labor a strong consumer sector weakness, which is caus-
amount in September, reflected a $22.2 billion market is helping give to help offset soft spots in ing problems for Ameri-
driven higher by big gains increase in the category consumers confidence to other parts of the econo- can manufacturers. How-
in borrowing for auto and that covers auto loans spend and finance part of my. ever, economists are
student loans. and student loans and their purchases by taking The overall economy, as forecasting that growth
The Federal Reserve said a $6.7 billion increase in on more debt. measured by the gross will rebound in the final
Friday that consumer bor- credit card borrowing. It The Labor Department re- domestic product, grew three months of this year
rowing increased $28.9 bil- was the biggest increase ported earlier Friday that at a lackluster annual rate to around 2.5 percent,
lion, the largest one-month in auto and student loans the economy created of 1.5 percent in the July- with the revival fueled in
increase on record going since July 2011. 271,000 jobs in September, September quarter, less large part by consumer
back to 1941. It followed a Economists believe con- the most this year, pushing than half the 3.9 percent spending.q
