Nonfarm payrolls, bottom line - Nomura

Analysts at Nomura explained that the bottom line is that the employment report was broadly weak. Growth in private payrolls slowed, and the decline in average weekly hours worked implies a very soft trajectory for aggregate hours worked.

Key Quotes:

"Taken together with the weak August business survey data (ISM manufacturing, regional Fed surveys) and the weaker-than-expected vehicles sales, this suggests that the pace of economic expansion slowed in August compared to June and July."

"Many Fed officials were looking for evidence of sustained reacceleration in growth. The preponderance of the data does not suggest that it has. This suggests to us that it’s more likely that the FOMC will wait for more evidence of better growth before raising interest rates. In this context, we continue to believe that the next interest rate increase will most likely come at the December FOMC meeting."