Home / Daily Dose / Fannie Mae: Employment Report Supports Forecast of ‘Solid Economic Growth’
Print This Post Print This Post

Fannie Mae: Employment Report Supports Forecast of ‘Solid Economic Growth’

fanniemaeFannie Mae's chief economist, Doug Duncan, weighed in on today's employment report from the Bureau of Labor Statistics, saying the GSE maintains its "forecast of solid economic growth" in response to the data released.

"Today’s encouraging jobs report also is consistent with results from our September National Housing Survey, to be released next week, which is expected to show a rebound in consumer expectations regarding housing after a couple of months of eroding confidence," Duncan said. "Overall, we maintain our forecast of solid economic growth – fueled by steady job gains – for the remainder of  the year, which should help build momentum for consumer housing sentiment, setting up for a stronger housing recovery in 2015."

The data released today by the Bureau of Labor Statistics indicated that the labor force added 248,000 jobs nationwide in September, topping expectations by about 33,000. The number of jobs added pushed the nation's unemployment rate down to 5.9 percent, its lowest level since July 2008. The new report also revised August's originally weak employment gains, which when first reported fell well below expectations.

"Today’s report confirmed our expectation that much of the weakness in the August hiring number would be revised away," Duncan said. "The improved job gains over the past six months, combined with other economic data, support our forecast for firming economic growth in the second half of 2014. The decline in the unemployment rate, though due partly to a shrinking labor force, will get the attention of Federal Reserve officials, but the muted wage gains may help soothe their concerns over brewing wage inflation."

The upward revisions of job gains in July and August totaled 69,000 more jobs added, which raised the average monthly job gain in the third quarter up to 224,000 – a modest decline from the 267,000 monthly average job increase reported for the second quarter.

About Author: Brian Honea

Brian Honea's writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master's degree from Amberton University in Garland.
x

Check Also

Federal Reserve Holds Rates Steady Moving Into the New Year

The Federal Reserve’s Federal Open Market Committee again chose that no action is better than changing rates as the economy begins to stabilize.