US October Nonfarm Data Falls Short Due to Hurricanes and Strikes

According to Odaily, a research report by China International Capital Corporation (CICC) indicates that the United States' nonfarm payroll data for October was weaker than expected, partly due to the impacts of hurricanes and strikes. The hurricanes forced a significant number of people to evacuate, leading to a notable decrease in response rates to business surveys. This resulted in a sharp decline in employment in the leisure and hospitality sectors, with a surge in the number of people unable to work due to weather conditions. Additionally, strikes led to a significant reduction in manufacturing employment. However, these disruptions are considered temporary, and their effects may reverse in the coming months. Overall, the U.S. labor market is gradually cooling down without showing signs of rapid deterioration. Considering the overall economic data, it is predicted that the Federal Reserve will cut interest rates by 25 basis points next week, continuing the normalization of monetary policy, though the pace of rate cuts may not be as aggressive as previously anticipated by the market.