Big revisions offset July miss on payrolls

By the numbers: July NFP and U.S Trade

Average hourly earnings m/m: +0.3%e vs. +0.3%a
Average hourly earnings y/y: +2.7%e vs. +2.7%a
U.S employment change: +193Ke vs. +157Ka
U.S unemployment rate: +3.9%e vs.+3.9%a
Prior change in NFP: revised higher from +213K to +248K
Prior change in private payrolls: revised higher from +202K to +234K
Prior manufacturing payrolls: revised lower from +36K to +33K

U.S Trade Balance: -$46.5Be vs. -$46.3B

Non-farm payroll (NFP)

U.S hiring eased a tad in July, but remains solid, and the unemployment rate fell, which suggests that the U.S labor market remains in expansion territory.

Payrolls rose a seasonally adjusted +157K, while the unemployment rate ticked down to +3.9%.

Revised figures show employers added +248K jobs in June and +268K in May, a net upward revision of +59K.

Wages rose +2.7% from a year earlier in July, a modest pace. The Labor force participation was +62.9% in July, unchanged after June’s increase.

Impact: The U.S dollar has lost some of its earlier shine against G7 currency pairs, while short-term rates are little changed. The move comes after the dollar strengthened for the third consecutive session yesterday, when the WSJ dollar index closed at its second-highest mark this year. The benchmark 10-year Treasury note yield has fallen to +2.973% from +2.980% before the report and down from +2.986% Thursday.

U.S Trade

The U.S trade deficit expanded in June at the fastest rate in two-year, reflecting rising imports and falling exports.

The trade deficit in goods and services increased +7.3% m/m, to a seasonally adjusted -$46.35B in June.

Exports fell -0.7% from May, while imports into the U.S. increased +0.6% on the month.

Market expectations were for the gap to widen to -$46.6B in June.