US: Mixed August labour market report

On balance the August labour market report disappointed slightly, but incorporated both positive and negative news. The unemployment rate resumed its rapid upward trend hitting 9.7%. The decline in nonfarm payrolls slowed to -216K, but with a net revision of -49K. However, the trend towards stabilisation in the labour market remains intact. Hourly earnings were better than expected for a second month and signs of stabilisation are now evident in compensation. We continue to expect that