US economy still adding jobs

Yesterday's payroll data should ease US recession fears for the time being. MarketWach reports:

The U.S. unemployment rate rose to 4.7% in September, the Labor Department reported Friday, but government data showed job growth was stronger than expected over the past three months, putting further interest-rate cuts by the Federal Reserve in jeopardy.

Nonfarm payrolls rose by 110,000 last month -- including 73,000 in the private sector -- very close to expectations of a 113,000 gain in total payrolls...

As measured by a survey of businesses, payroll growth in July and August was revised higher by 118,000, the government said. Instead of falling by 4,000 in August, payrolls rose 89,000 after revisions. The big decline in public-school employment previously reported was revised away. Read the full report...

Average hourly earnings rose 0.4% in September, putting the year-over-year growth in wages at 4.1% -- an alarm bell for those worried about rising inflation.

The average workweek was steady at 33.8 hours and total hours worked in the economy increased by 0.1%.

Job and income growth aren't the only things that are fuelling consumer spending. So is credit growth, which at least continued in August, reports MarketWatch.

Outstanding U.S. consumer debt rose at an annual rate of 5.9% in August, pushed higher mostly by a hefty gain in credit-card debt, the Federal Reserve reported Friday.

Globally, though, August data mostly indicate slower growth ahead. For example, from the OECD composite leading indicators for August:

The latest composite leading indicators (CLIs) suggest that a moderation in economic expansion lies ahead in the OECD area. August 2007 data show weakening performance in the CLI's six month rate of change in all the major seven economies. The latest data for major OECD non-member economies point to moderating expansion in China, India and Brazil, but an improved outlook for Russia.

And Japan's Cabinet Office reported yesterday that its leading index dropped to 30 in August from 72.7 in July.