August 2017 NFP Data Could Be Positive for the Auto Industry
July 2017 non-farm payrolls
The US NFP (non-farm payrolls) data show the number of jobs added or lost each month in the country. As of August 7, the employment summary for July 2017 was released by the U.S. Bureau of Labor Statistics. The NFP change figure for July stood at 209,000—much higher than the market’s expectation of just 175,000.
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On the day the July data were released, June’s NFP change of 222,000 was revised upward to 231,000, which added pessimism.
Non-seasonally adjusted data
On the non-seasonally adjusted basis, July 2017 NFP data stood at 146,615—higher than 146,406 in June. Sectors like healthcare and business services were among the top sectors where employment continued to grow in July. There weren’t any major changes in the employment data from other sectors like transportation and manufacturing.
August estimates and auto industry
Analysts expect the NFP change data for August to fall to 180,000 from 209,000 in July.
Among all of the other key macroeconomic indicators for the auto sector, NFP data act as a key indicator. Healthy employment growth in the country along with rising wages could boost consumers’ purchasing power. In general, higher purchasing power encourages more people to buy expensive consumer goods like trucks and cars.
In July, the US job market showed improvements. Overall, a continued uptrend in NFP data could be positive for US auto demand.
Automakers will likely release their August US sales data on September 1, 2017. Visit Market Realist’s Autos page for updates.