This week unlike many others was mainly cheerful and promising for the worlds leading economy as well as for Obamas overall performance and prior plans that he has put in place for the countrys revival as jobless levels of the country fell to a record low this past month along with enhanced business conditions.
In fact this weeks long awaited jobs report of the month of September came in surprisingly cheerful as the jobless rate for that period plummeted actually to the lowest level witnessed since January 2009 mainly as employers took on more part-time workers; confirming before the November elections that labor conditions are enhancing further.
Actually the current jobless rate of September fell to 7.8 percent, which was unexpected by the market whom projected a slightly higher unemployment levels of 8.1 percent, indicating that companies confidence remains corroded and employers are worried regarding the local and global economic conditions of this year having the EU debt crisis still unsolved and affecting the worldwide current slowed down economic health.
Yet this unexpected and cheerful fall of the unemployment rate puts Obama back in lead against his competitor Mitt Romney whom actually blamed and accused the president to have neglected the countrys ongoing weak labor market this past period to mainly focus on his health-care program; the Obamacare.
Furthermore this week the ADP employment change of September, which as we know is compiled from a subset of ADP records for employees working in the private sector, rose cheerfully by 162 thousand; above the market predictions of 140 thousand added workers yet lower than the revised prior reading of 183 added jobs from 201 prior added jobs throughout the countrys private sector.
Not forgetting that the last ADP report was also cheerful as it showed that the ADP employment change of August rose cheerfully and strongly by 201 thousand; a sign that added jobs throughout the countrys private sector are only expanding rather than contracting.
Yet the jobs report released on Friday also showed us that less-than-forecasted workers were added across the country with actually and unexpectedly the Nonfarm payrolls coming in lower than projected with only an add of 114 thousand, a clear sign that employers remain not truly enthusiastic to employ more people and that firing eased only faintly.
Furthermore we watch private payrolls decreasing as well to an add of 104,000 jobs in September; below the estimates of 130,000 added jobs while on the other hand manufacturing payrolls gloomily shed by 16,000 jobs; also worse than expectations of a neutral reading of 0 jobs.
Moreover the Average hourly earnings rose slightly to 0.3 percent from 0.0 percent while compared with a year earlier, these average hourly earnings plunged slightly to 1.7 percent unlike what was forecasted by the market; 1.8 percent, while that the Average weekly hours rose faintly as well to 34.5 and therefore all in all the overall pay growth did not truly vary and actually lost some momentum.
On the other side gloomy services reports were released from the European Area, yet we watch the worlds leading economy services activities expand at a faster pace this past month, which was actually not predicted by the market to accordingly stimulate some optimism regarding the present economic performance of the superpower and confirm once again that business conditions keep on supporting the growth of the country.
In fact the ISM services of September; a composite diffusion index regarding the services sector conditions across the United States, which was highly forecasted to come out at around 53.4 came out cheerfully instead at 55.1 from a prior reading of 53.7 since that orders continue on picking up and therefore continue on expanding upwards gradually.
Yet this scenario regarding the services activities on the U.S soil is much different and gloomier actually on the EU soil as today Germany; the strongest E.U economy, released its final reading of its PMI services for September that came out gloomily at 49.7 from 50.6 while that France PMI plummeted to 45.0 since that the region is witnessing unending downside pressures created mainly by the ongoing debt crisis.
Not forgetting as well that this week the Institute for Supply Management; the ISM Manufacturing is a composite diffusion index regarding manufacturing conditions across the United States by targeting roughly supply purchasing managers among 300 industrial firms across the 50 states, rose cheerfully above a reading of 50 to 51.5 from 49.6; above the market projections of 49.7.
If truth be told manufacturing conditions strengthened slightly and gradually as a result of a slower global growth and unending downside local and international pressures with the EU unsolved debt crisis affecting deeply the trading of the superpower and accordingly its production and demand on its products locally and globally.