Solid US jobs report expected amid reports of impending China trade deal
The US government will release data on the number of jobs added in April today—a key economic indicator that will be closely watched by analysts and investors.
On Wednesday, the ADP Research Institute released a report showing that the private sector added 275,000 jobs last month, almost double the growth in March and the strongest gain since July 2018. Openings in the services sector accounted for almost 85% of the jobs added in April.
Economists expect a slightly more subdued figure from the Department of Labor today, with the average of a survey of economists suggesting 181,000 jobs were added in April. This would be roughly in line with the 196,000 jobs added in March.
The figures suggest that, despite persistent global economic headwind, the world’s largest economy is expanding at a healthy pace. In the first three months to March, the economy grew at an annualised rate of 3.2%—a substantial increase on the 2.2% growth notched in the fourth quarter of 2018 and a figure that beat all forecasts.
With reports swirling that a US-China trade deal may soon be announced—possibly as early as next Friday—markets have good reason to be bullish.
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