Strong US figure - "reduces recession fears"

Updated:

Published:

Strong US figure - "reduces recession fears"
Photo: Jake May/AP/TT

The job market in the USA is significantly stronger than expected, show new figures. The news reduces the pressure on the American central bank, according to Elisabet Kopelman, USA analyst at SEB.

The American economy appears to be soft-landing. Inflation is falling and the labor market seems to be holding up.

The overall picture looks stronger than it has previously, says Elisabet Kopelman.

Employment increased by 254,000 jobs, excluding the agricultural sector, in September, according to new figures from the labor market department. In August, job growth was 159,000.

The unemployment rate fell to 4.1 percent, from 4.2 percent the previous month. Economists had on average expected 150,000 new jobs and an unemployment rate of 4.2 percent.

This is a thoroughly strong report and this will further calm fears that the US is heading into a recession.

The figures can be interpreted as the American central bank, the Federal Reserve (Fed), not having to rush as much as before to lower interest rates.

You shouldn't remove expectations of interest rate cuts from the Fed, they have a very high interest rate. But the pressure on them to take big steps is decreasing, says Elisabet Kopelman.

From a Swedish perspective, the American job figures are also good news.

It's good for the open export-dependent economy that Sweden is if the US avoids a recession.

The figures from the US strengthen the dollar against the krona by seven öre to 10.37.

On the stock markets, a sigh of relief is drawn that the American economy is holding up. The Stockholm stock exchange rises by half a percent and in the US, prices are rising in early trading.

Tags

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Iran Approves Plan to Remove Four Zeros from Currency

Iran Approves Plan to Remove Four Zeros from Currency

Bitcoin Hits New Record High at Over $125,689

Bitcoin Hits New Record High at Over $125,689

Why Saudi Arabia Seeks to Acquire Gaming Giant EA

Why Saudi Arabia Seeks to Acquire Gaming Giant EA

Record Number of Apartments for Sale on Hemnet in September

Record Number of Apartments for Sale on Hemnet in September

US Tariffs on Swedish Timber Threaten Sawmill Profitability

US Tariffs on Swedish Timber Threaten Sawmill Profitability

Tips for Selling Gold: What to Consider Beforehand

Tips for Selling Gold: What to Consider Beforehand

Gold Prices Surge as Complaints Against Private Sellers Rise

Gold Prices Surge as Complaints Against Private Sellers Rise

US Stock Market Closes Mixed After Strong Week

US Stock Market Closes Mixed After Strong Week

Nelly Wins Case Against Shein but Must Pay Legal Costs

Nelly Wins Case Against Shein but Must Pay Legal Costs

Offline Card Purchases Coming by Summer 2026 in Sweden

Offline Card Purchases Coming by Summer 2026 in Sweden

Storm Amy Drives Electricity Prices to Zero in Southern Sweden

Storm Amy Drives Electricity Prices to Zero in Southern Sweden

Blue and yellow IKEA continues to grow in the US - buys a large property in central New York as part of its expansion

Blue and yellow IKEA continues to grow in the US - buys a large property in central New York as part of its expansion

Clas Ohlson Warehouse Staff Face Termination Over New Agreement

Clas Ohlson Warehouse Staff Face Termination Over New Agreement

Stockholm Leads Europe in Stock Market Growth with Verisure Listing

Stockholm Leads Europe in Stock Market Growth with Verisure Listing

Oskarshamn Nuclear Reactor Restart Delayed Again

Oskarshamn Nuclear Reactor Restart Delayed Again

Financial Supervisory Authority Warns of Growing Scam List

Financial Supervisory Authority Warns of Growing Scam List

Service Sector Shows Clear Recovery in September Index

Service Sector Shows Clear Recovery in September Index

Second-Highest Rent Increase in Over 20 Years Reported This Year

Second-Highest Rent Increase in Over 20 Years Reported This Year

Stockholm Stock Market Rises for Sixth Consecutive Day

Stockholm Stock Market Rises for Sixth Consecutive Day

International Flights Rise in Sweden This Year

International Flights Rise in Sweden This Year