The Day at a Glance | November 6 2020

The Top

· The creation of jobs slows down for the fifth consecutive month in the US, even though it does so less than estimated (638k vs 600k e.).

· Gross fixed investment in Mexico grew a monthly 5.7% in August (-16.6% annual), while consumption increased 1.8% (-13.1% annual).

· Central Bank of China considers discontinuing monetary stimulus after a solid economic recovery.

· Biden gains advantage over Trump in Georgia and shrinks his disadvantage in Pennsylvania; Trump claims fraud.

Economic environment

United States employment data exceeded estimates during October by adding 639 thousand new jobs during the period. However, the figure is the lowest seen in the last five months, which confirms a slowdown in the labor market`s recovery. The unemployment rate fell to 6.9% (vs 7.7% e.) and the increase in wages slightly moderated to 4.5% annual. Most of the jobs were created in the lodging and leisure industries (271 thousand), which suggests that the recovery among the most affected sectors by the virus is maintained. Professional services (208 thousand), retail trade (104 thousand) and construction (84 thousand) also recorded solid numbers, while jobs created by the government decreased (-268 thousand). The permanent loss of jobs suffered few changes with respect to the previous month and remained at 3.7 million, 2.4 million above the level seen in February. The data suggests that the recent outbreaks in the US have not significantly affected the labor market`s recovery; even though this could change in November, month during which an alarming acceleration in cases has been recorded.

Facebook Comments