TEXT OF STORY
BRIAN WATT: Later this morning, we’ll hear more about jobs, but this time, across the U.S. how many were created in August and How many Americans still claim to be looking for them? Economists have already been consulting their crystal balls, as Ashley Milne-Tyte reports.
ASHLEY MILNE-TYTE: The key words seem to be modest growth.
Global Insight economist Nariman Behravesh expects payrolls to add about 120,000 to 130,000 jobs.
He expects unemployment to drop a point from July to 4.7 percent. On the whole he says recent jobs numbers indicate the economy’s doing fine.
NARIMAN BEHRAVESH:“Jobs growth is decent, income growth is decent, all of this suggests that in fact this expansion still has a good deal of momentum, it’s not as strong as it was before, but that momentum’s still there.”
Hugh Johnson of Johnson-Illington Advisors says if the economy were to add more jobs than expected, the Fed would be concerned it might have to hike rates again to keep inflation in check.
HUGH JOHNSON:“125,000 jobs per month is very much on the slow side and wouldn’t worry ’em and I think it makes their job easier, it means that it’s very hard for companies to raise prices.”
And that means the rate of inflation should stay down.
In New York I’m Ashley Milne-Tyte for Marketplace.