U.s. Economy | featured news

... the last three months do suggest that the U.S. labor market is on an upward trajectory... whoever wins the presidential election next week will likely get to take credit for the recovery that’s now underway.

U.S. employers added 171,000 jobs in October, and hiring was stronger in August and September than first thought. The unemployment rate inched up to 7.9 percent from 7.8 percent in September... The government revised its data to show that 84,000 more jobs were added in August and September than previously estimated. The jobs gains in October were widespread across industries. And the percentage of Americans working or looking for work rose for the second straight month.

U.S. manufacturing increased slightly last month, while construction spending rose 0.6% to an annual rate of $851.56 billion. Meanwhile, October consumer confidence climbed to its highest reading since early 2008.

Policy makers are being urged to address long-term unemployment before those looking for work decide to give up trying for good.

U.S. companies added 158,000 jobs in October, data from a payrolls processor showed on Thursday in a revamped report on the private sector labor market. The historical data for the ADP National Employment Report was revised as part of the new methodology, which was used for the first time in the October report. September's increase has halved to 88,200 new jobs from an initially reported 162,000.

Nonfarm productivity increased at a modest pace in the third quarter, giving little sign that businesses are poised to ramp up hiring significantly.

Consumer spending in the U.S. climbed more than forecast in September, a sign the biggest part of the economy was picking up as the quarter drew to a close. Household purchases, which account for about 70 percent of gross domestic product, rose 0.8 percent, the most since February, after advancing 0.5 percent in August, a Commerce Department report showed today in Washington. The median estimate in a Bloomberg survey of 71 economists called for a 0.6 percent gain. Incomes climbed 0.4 percent, the most since March.

Non-farm payrolls in October are forecast to have risen 124,000, barely more than September's 114,000 gain, according to 78 economists polled by Reuters. The unemployment rate probably edged back up to 7.9 percent after falling to 7.8 percent from 8.1 percent last month. The figures are due on Friday.

U.S. economic growth picked up in the third quarter as a late burst in consumer spending and a surprise turnaround in government outlays offset the first cutback in business investment in more than a year.

Consumers will have to dig deeper into their pockets next year to pay for costlier healthcare, more expensive grocery bills and higher taxes, an extra drag on the country's already slow-moving economy.