US: Data reinforces case for December fed move – Wells Fargo

Research Team at Wells Fargo Securities, suggests that the US data released last week continued to point toward an improving U.S. economy.

Key Quotes

“The closely watched ISM manufacturing and nonmanufacturing indexes reversed weak August readings in September, suggesting that weakness was more likely the result of seasonal quirks than a material slowdown. The September payroll gain was solid, though below consensus, as the economy averaged 192,000 new jobs over the last three months. Current economic conditions support a rate hike in 2016, with mounting inflation pressures and rising average hourly earnings. The next Fed meeting takes place before the October jobs report and the election, so we expect the FOMC to hold off until December.”