Friday preview: US non-farm payrolls report in focus

The US non-farm payrolls report will be under the microscope on Friday as the Federal Reserve considers the health of the labour market in its policy decisions.

Economists expect the report to show US employers added 170,000 jobs in September following a 151,000 increase in August. The unemployment rate is forecast to remain at 4.9%.

Average hourly earnings are predicted to rise 2.6% year-on-year in September after a 2.4% gain the previous month. On a month-on-month comparison average earnings are projected to improve to 0.3% growth last month from 0.1% in August.

Capital Economics said the 151,000 gain in non-farm payrolls in August represented a sharp slowdown from the previous two months. However, the increase of more than 270,000 in both June and July were “never sustainable in an economy approaching full employment”, said economist Andrew Hunter.

While the economist believes most labour market indicators have been holding up fairly well in September, he admitted that recent data hasn’t been "particularly encouraging".

Hunter pointed to the employment index of the Markit manufacturing PMI, which showed a modestly rebound in the sector’s payrolls in September, and the services PMI, which suggested private services payrolls increased by less than 100,000.

However, he noted that the labour force has been expanding by an “impressive” 200,000 per month on average in the past year.

“And as Fed Chair Janet Yellen argued in her post-Federal Open Market Committee press conference last week, this is a positive development for the US economy," he said.

“We don’t expect this rapid growth in the labour force to continue indefinitely, and the survey evidence suggests that the unemployment rate will resume its downward trend soon.”

Friday 07 October

INTERIM DIVIDEND PAYMENT DATE
1pm, Admiral Group, Berendsen, Camellia, Cape, Capital Drilling Ltd. (DI), Centamin (DI), Clarke (T.), Countrywide, Devro, Drax Group, Eurocell , Fyffes, Glanbia, Grafton Group Units, Greggs, H&T Group, InterContinental Hotels Group, International Personal Finance, Irish Continental Group Units, Lavendon Group, Martinco , PPHE Hotel Group Ltd, Regus, Shire Plc, STV Group, Taylor Wimpey

QUARTERLY PAYMENT DATE
Blackrock North American Income Trust , Land Securities Group, Regional REIT Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Credit (US) (20:00)
Industrial Production (GER) (07:00)
Non-Farm Payrolls (US) (13:30)
Unemployment Rate (US) (13:30)
Wholesales Inventories (US) (15:00)

FINALS
Progility

SPECIAL DIVIDEND PAYMENT DATE
Admiral Group, Carr's Group

EGMS
Sable Mining Africa Ltd. (DI)

AGMS
Abbey, Legendary Investments

UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
Halifax House Price Index (08:30)
Industrial Production (09:30)
Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE
AdEPT Telecom, Conviviality, Fletcher King, Goodwin Plc, Micro Focus International, Miton UK Microcap Trust