NEW YORK—The recent slower pace of job creation likely takes an interest rate hike off the table when Federal Reserve policymakers meet in October but a move is still in play for December.
In August and September, payroll gains averaged only 139,000. But that likely had much to do with a recent surge in worker productivity. Job gains have softened several times during the recovery only to rebound, and the long-term prospects for economic growth remain strong.
Consumer activity appears quite robust. Third-quarter spending will likely register a 3 to 4 percent annual gain, and household balance sheets are in their best shape since the recovery began.
Hampering growth is the stronger dollar and fears the Chinese government will further mismanage the world's second largest economy.
