Nonfarm payrolls vs the bigger picture - ANZ

Analysts at ANZ noted that the 255k rise in July NFPs was the second strongest print this year and shows the trend in job creation has accelerated recently in contrast with the disappointing Q2 GDP data.

Key Quotes:

"Average earnings held steady at 2.6% y/y, as did the unemployment rate at 4.9%. The strength was broad- based with most industries seeing solid gains.

The most reliable component of the leading indicator for future activity – the average workweek for production and nonsupervisory employees – edged up 0.1 hours to 33.7. Both the participation and employment rates increased.

That collection takes away some concerns being expressed towards the US economy following a weak read for Q2 GDP, though the trade deficit figures (USD44.5bn) suggest Q2 GDP could be revised even lower."