A Spot Of Unenjoyment

No Lipstick Can be Thrown on this Pig

The markets have been hit with yet another negative economic surprise today, this time concerning the indicator that is thought to have the full attention of the representatives of Anglo-Saxon central banking socialism huddling in the Eccles building. The professional soothsayer class has once again failed to foresee this development, but we hereby predict that won’t keep it from continuing to apprise us of the results of its entrails readings.

Oh well, at least we will continue to get to make fun of the economic theory challenged “science is prediction” class of econometrists.

US payroll gains sag – and once again, the always sunny expectations of the professional soothsayer class have been disappointed 

As one observer commented on this latest economic data debacle: “There’s no way to throw lipstick on this pig” (we’re actually not so sure about that – someone will surely try?):

“U.S. employers slammed the brakes on hiring over the last two months and wages fell in September, raising new doubts the economy is strong enough for the Federal Reserve to raise interest rates by the end of this year. Payrolls outside of farming rose by 142,000 last month and August figures were revised sharply lower to show only 136,000 jobs added that month, the Labor Department said on Friday.

That marked the smallest two-month gain in employment in over a year and could fuel fears that the China-led global economic slowdown is sapping America’s strength.

“You can’t throw lipstick on this pig of a report,” said Brian Jacobsen, a portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

(emphasis added)

Anyway, one mustn’t forget, employment is a lagging economic indicator – as a rule, it is therefore one of the last one’s to exhibit weakness when the economy turns from expansion to contraction. In other words, one could suspect here that payrolls have so to speak become a confirming indicator that tells us that an “official” economic contraction is imminent.