US economic news falls to dip stage on roller-coaster ride
Ten days ago, the news on the US economy was quite spectacularly good. The latest data was almost as bad as the previous data was good. What is going on?
It may simply be that everything is going back to normal. President Trump looks increasing like every other president – adopting a policy in Syria that Hillary Clinton backs, and hitting a barrier constructed of US Congress, when trying to get through new legislation.
And much the same can be said for the news on the US economy.
US non-farm payrolls rose by just 98,000, that was the smallest increase since last May, and contrasts with a 219,000 rise in February. To really rub salt in the wound, data for January and February was in fact revised down by 38,000.
Marcus Bullus, trading director at MB Capital was less sanguine. He said: “The March non-farm payrolls number was a phenomenal miss and will add to market uncertainty following the Syria missile strikes. Very few traders saw this one coming. It was little surprise the Dollar went into a nosedive in the immediate aftermath of the announcement. The upshot of this very poor number could be a more dovish and cautious Fed. Next month’s [data] will be decisive in determining whether this is a blip or the beginning of a broader slowdown. You suspect, and hope, the former.