U.S. Payrolls Were Stronger than Expected, Buoying the Dollar

U.S. nonfarm payrolls increased 228k in November after climbing 244k in October, compared to the 195K expected, which was revised from 261k following a 38K gain September gain which was the results of U.S. hurricanes. The unemployment rate held at 4.1%. The labor force bounced 148k versus -765k in October, with household employment up 57k from -484k. Earnings rose 0.2% from -0.2% which was revised down from unchanged.

Hours worked increased to 34.5 from 34.4, which shows further increases in the number of hourly workers. Private payrolls were up 221k (ADP was 190k higher) compared to October’s 213k which was revised from 252k, with a 62k gain in the goods-producing sector and a 24k gain in construction, while manufacturing rose 31k. The service sector added 159k. Government employment rose 7k, but the Federal side shaved 3k.  The stronger than expected number buoyed the dollar and weighed on gold prices.

Separately, U.S. consumer credit rose $20.5 billion in October following a revised $19.2 billion September increase which was $20.8 billion. Non-revolving credit continued to pace the strength, climbing $12.2 billion versus the prior $13.2 billion gain which was revised from $14.4 billion. Revolving credit was up $8.3 billion compared to $6.0 billion previously which was revised from $6.4 billion.