Double-dip recession fears ease in US

Double-dip recession fears in the US eased today after a better-than-anticipated jobs report for September.

US firms created 103,000 jobs, against economist expectations of 60,000, but the additional hiring was not enough to lift the overall unemployment rate, which stayed at 9.1% for the third month in a row.



The data gave markets across Europe a modest boost with the FTSE 100 Index up more than 70 points soon after the figures were released, though the UK's top flight eased back subsequently.



Andrew Wilkinson, chief economic strategist at Miller Tabak & Co, said: "In the big picture, today's reading soothes recessionary fears."



Companies with large US businesses led the rally. Building supplies firm Wolseley, which generates 40% of revenues in the country, topped the FTSE 100 risers while there were also good gains for Holiday Inn and Crowne Plaza hotel group InterContinental.



The US labour department also raised its estimates for the number of jobs created in the previous two months. Non-farm payrolls, or new jobs added, rose by 57,000 in August and by 127,000 in July, according to the revised data.



But Rob Carnell, analyst at ING Bank, warned against reading too much into the figures.



He said: "Overall, this month's labour market report was as unexpectedly good as last month's was unexpectedly bad. This is still not a strong labour market."



Economists also pointed out that 45,000 of September's jobs increase came from a return to work from striking workers at telecoms firm Verizon.



Construction, healthcare, and professional and business services sectors saw the largest gains last month, while government employment edged down.



President Barack Obama has made jobs a key part of a plan to get the US economy moving again. He has proposed a 447 billion US dollar (£290 billion) initiative to create 1.9 million new jobs and cut the rate of unemployment by one percentage point.



The US Federal Reserve has also launched Operation Twist, a 400 billion US dollar (£260 billion) bond buying scheme, in a bid to drive down long-term interest rates and cut borrowing costs for firms and individuals, though many economists expect a further round of quantitative easing is also on the way as well.

PA

Start your day with The Independent, sign up for daily news emails
Have you tried new the Independent Digital Edition apps?
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Clinical Lead / RGN

£40000 - £42000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: IT Sales Consultant

£35000 - £40000 per annum: Recruitment Genius: This IT support company has a n...

Recruitment Genius: Works Engineer

Negotiable: Recruitment Genius: A works engineer is required in a progressive ...

Recruitment Genius: Trainee Hire Manager - Tool Hire

£21000 - £25000 per annum: Recruitment Genius: Our client is seeking someone w...

Day In a Page

Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
Rugby World Cup 2015: The tournament's forgotten XV

Forgotten XV of the rugby World Cup

Now the squads are out, Chris Hewett picks a side of stars who missed the cut
A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests