US: Solid hiring activity in October boosted by weather payback – Nomura

Analysts at Nomura note that the US nonfarm payroll employment increased 250k in October, well-above expectations (Nomura: 175k, Consensus: 250k), consistent with healthy incoming data in recent months.

Key Quotes

“Hiring activity in goods-producing industries accelerated notably with a 67k gain, driven by a sharp acceleration in manufacturing (+32k). Service-providing industries also contributed solidly to the topline numbers, adding 179k.”

“Hurricane Michael appeared to have little impact on the report but payback from Hurricane Florence appears to have boosted October’s NFP reading: employment growth in accommodation and food services rebounded to +33k after a 14k loss in September, likely a result of businesses returning to normal operations after temporarily shutting down during Hurricane Florence.”