Unemployment rises to 8.3 percent; job gains promising
Posted August 3, 2012
Significant data delivery and market movement this Friday as the July Employment Report delivered a jobs creation number of 163,000, while the overall Unemployment Rate rose to 8.3%. The markets were very happy with the number of jobs that were created last month, and while there are detractors to this number (some say the auto industry gave this a false positive), overall it seems that most economic pundits are happy to see the number rise for July. That being said, we’re still far short of creating the number of jobs to truly impact what is still considered to be an anemic jobs market here in the US.
The 10 Year Yield has risen steadily on this morning’s data, hitting a yield of 1.59% by lunchtime Friday, and it now sits above its 40 day average.
July’s Institute of Supply Management (ISM) Report indicated the continued expansion of the service industry with a reading of 52.6. Any reading above 50 is considered to represent expansion in the service sector. Per the Fed’s statement on Tuesday this week, they will be digesting today’s economic data over the next few weeks, along with other economic reports, to determine what changes to existing monetary policy may need to occur.
Meanwhile, thanks to stronger economic data today, mortgage rates here in the Triangle are feeling increased upward pressure, while the Dow has taken today’s employment number and run with it, adding 240 points to the upside prior to lunch on Friday. That being said, mortgage rates and triangle housing fundamentals continue to remain very strong. Have a great weekend.