Fears of Double-Dip in US abate

Slightly stronger employment figures than expected in the States has enabled some confidence to return to their economy. Headline payrolls fell 54K, another decline owing to the end of Government temporary census work. Private payrolls though rose 67K after last month’s 107K which along with prior months revealed a pleasing net upward revision to payrolls employment of 123K. The level of private payroll employment therefore in August was some 67K better than expected. The unemployment rate though remained stubbornly high, up from 9.5% to 9.6% from an up-tick in workforce participation.

RBA
Meets tomorrow but there are firm expectations for them to remain on hold. Despite recent strong GDP figures growth could soften slightly in the second half. If the CPI figures at the end of Oct show inflation starting to run away however the RBA will act then.