Incidence of non-farm data unexpectedly “moderation” in the United States fell to 4.1 per cent

On 7 August, the unexpected decline in employment in the United States economy in July and the sharp downward revision of non-farm employment data for the previous month may have raised questions as to whether the Federal Reserve will increase interest rates next month. The report on employment released on Friday indicated that the number of non-farm jobs had decreased by 23,000 last month, following a reduction of 20,000 in the previous June. However, employment data were generally moderate in July. Economists generally agree that the labour market is in a “slow recruitment, slow layoffs”. Despite the fact that the situation in the Middle East continues to be in its sixth month, the economy appears to have successfully responded, with domestic demand growing at the fastest rate in three years. As labour force participation rates declined further, the unemployment rate fell from 4.2 per cent in June to 4.1 per cent. Prior to the release of the report, the financial markets expected the Fed to raise interest rates in September. It is expected that inflation data, published next week, may intensify the debate on the prospects for short-term monetary policy。