US job creation up in July

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WASHINGTON, D.C. New job creation in the United States in July is estimated to have risen slightly above expectations, and totaling 179,000.

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A report from private US payroll firm ADP said on Wednesday the world’s top economy added 179,000 jobs in July.

The figures came ahead of official job-creation figures for July, due on Friday.

Meanwhile, economists expect the unemployment rate to dip down one-tenth point to 4.8 percent.

The consensus among economists is for nonfarm employment to increase by 185,000 payrolls, after a 287,000 surge in June. Payrolls have increased an average of 147,000 a month in the latest three-month period, which includes the dismal performance in May.

However, the upbeat jobs data did little to boost hopes for the US interest rate rise.

Analysts expect only a moderate impact on the chances of a US rate hike this year – a plus for the dollar – even if the figures are strong.

A sluggish second-quarter US GDP report, which showed the economy expanded by just 1.2 percent, was well below the pace of the last two years.

The economy has grown at an annual rate of only 2.1 percent since the recession ended in June 2009, compared with annual growth of 4.3 percent during the economic expansion from 1982 to 1990.

And even with an unemployment rate of 4.9 percent, a Gallup poll found that 60 percent of Americans think economic conditions in this country are “getting worse.”

In Tokyo, the greenback weakened to 101.22 yen from 101.25 yen on Wednesday in New York.

The US unit also traded in the red against Malaysia’s ringgit, the South Korean won, Philippine peso, the Singapore dollar, and Thai baht.

The euro was nearly flat at $1.1144 from $1.1148 while it dropped to 112.82 yen from 112.87 yen in US trade.

The pound rose to $1.3332 from $1.3316 in US trade, as the BoE wraps up a policy meeting later Thursday.

Britain’s central bank is seen as likely to cut interest rates to a record-low 0.25 percent – their lowest in the BoE’s more than 300-year history – as it looks to counter the impact of the country’s vote to quit the European Union.

A rate cut would be a first since March 2009, when the BoE slashed to the current all-time low of 0.50 percent – and launched its bond-buying program as a buffer against the fallout from the global financial crisis.

AFP

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