Global Economy Shows Signs of Weakness as US Jobs Growth Disappoints
The global economy showed signs of weakness as the US reported disappointing jobs growth and vehicle sales fell to their lowest level since February.
The US non-farm payrolls rose by just 29,000 in September, well below the expected 90,000, with August's gain revised sharply lower from 162,000 to 19,000. However, behind these seasonally adjusted headline numbers, actual payroll data shows a more stable situation.
The wider employment picture is also encouraging, but seasonal patterns have gotten very random. This raises questions about the veracity of the data, especially as it coincides with the change in leadership at the agency from proper statisticians to political appointees.
In other economic news, US factory orders were little-changed in August from July, and Tokyo inflation jumped sharply to 2.7%, with core inflation reaching 3.0%. China's railway network handled a record number of passengers during its week-long holiday, while Euro Area CPI inflation rose to 3.8% in September.
The global food price index has also risen, up 5.8% from year-ago levels, driven by increases in cereals and vegetable oils. In contrast, meat prices are essentially unchanged from a year ago, and dairy prices have fallen 19%.