The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
US job market slightly weaker than expected in August
Overall, the US labor market was slightly weaker than expected in August. While jobs grew almost exactly as expected, the unemployment rate surprisingly rose and wage growth was slightly below expectations. As reported by the US Department of Labor, 315,000 additional jobs were created. Economists polled by Dow Jones Newswires had expected an increase of 318,000. The unemployment rate rose to 3.7 (July: 3.5) percent, while economists had expected the rate to remain unchanged. At the same time, the employment rate increased to 62.4 (62.1). Hourly wages rose 0.3 percent, or $0.10, from the previous month to $32.36. Economists had expected an increase of 0.4 percent. Year-on-year, wages were 5.2 (5.2) percent higher than 5.3 percent had been expected.
US orders in July significantly weaker than expected
US industrial orders were much weaker than expected in July. According to the Department of Commerce, it fell 1.0 percent from the previous month. Economists, on the other hand, had expected an increase of 0.2 percent. For the previous month there was a revised plus of 1.8 percent, provisionally an increase of 2.0 percent had been reported. Non-aircraft non-aircraft capital goods orders, which are considered a key measure of corporate spending, climbed 0.3 percent. In the previous month, an increase of 1.0 percent was registered.
Gazprom: Nord Stream 1 still out of service due to mechanical problems
The Russian energy group Gazprom PJSC has announced that it will not put the important natural gas pipeline Nord Stream 1 to Germany back into operation for the time being after maintenance work. The state-owned company justified this on the Telegram news service with an oil leak in the Portovaya compressor station. That puts pressure on Europe as governments try to avoid winter energy shortages.
Lindner: G7 want to form coalition for price cap for Russian oil
According to Federal Finance Minister Christian Lindner (FDP), the finance ministers of seven leading industrial nations (G7) are counting on support in the European Union (EU) and beyond for the upper price limit they are aiming for for Russian oil. “Above all, we as G7 finance ministers agreed today that we want to form a coalition for this oil price ceiling,” said Lindner in a statement in Berlin. The G7 wanted to convince all EU countries and also promote the measure. “The more united and larger such a coalition for this price cap, the more likely it is that we can achieve good results quickly.”
Mützenich: Coalition will put together a convincing relief package
SPD parliamentary group leader Rolf Mützenich has shown himself to be convinced that the traffic light coalition will put together an extensive relief package as a reaction to the sharp rise in energy and living costs at the weekend. An agreed package would be “convincing both in terms of the measures and ultimately in terms of volume,” said Mützenich at the end of a meeting of the SPD parliamentary group in Dresden, which Chancellor Olaf Scholz also attended. An agreement must “reach the public with force”.
BRAZIL
Industrial Production July +0.6% MoM – IBGE
Industrial Production July -0.5% yoy – IBGE
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DJG/DJN/AFP/hab/sha
(END) Dow Jones Newswires
September 02, 2022 13:07 ET (17:07 GMT)