US jobs figures ‘will highlight faltering economy’
City Index May 3, 2013 4:15 PM
<p>Economists are predicting the nonfarm payrolls data will again be below the averages from the start of the year.</p>
US employment data for April is expected to show the country's economy recovered slightly, but not by enough to prevent concerns it is struggling to maintain steady growth.
According to a Reuters survey of economists, nonfarm payrolls are believed to have increased by 145,000 jobs. This comes after a nine-month low of 88,000 in March, but both results are well below the 200,000 average for the first two months of 2013.
Millan Mulraine, a senior economist at TD Securities, said: "That would be consistent with an economy that's losing growth momentum but hasn't fallen out of bed."
It is estimated the US economy grew at a rate equivalent to 2.5 per cent in Q1 2013, but figures relating to spending on construction, trade and retail sales suggest the period ended with significantly less expenditure.
Following tax hikes and government spending cuts that came into effect on March 1st, the country has appeared to struggle to sustain growth, but the predictions for employment figures would be enough to keep unemployment space at a four-year low.
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