Investment Clock insights

Employment figures show good start to the year for US economy


Ian Kernohan

3 February 2017

The latest payroll numbers suggest that the US economy had a solid start to the year. Employment rose by 227,000 in January, with the unemployment rate showing a small increase to 4.8%, on the back of a rise in the participation rate.
A combination of strong employment growth and modest wage pressures, should allow the US Federal Reserve to continue with its plan of gradual interest rate rises. We expect a further increase during the second quarter.

The latest payroll numbers suggest that the US economy had a solid start to the year. Employment rose by 227,000 in January, with the unemployment rate showing a small increase to 4.8%, on the back of a rise in the participation rate.

A combination of strong employment growth and modest wage pressures, should allow the US Federal Reserve to continue with its plan of gradual interest rate rises. We expect a further increase during the second quarter.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.