September’s ETI gain was driven by positive contributions from six of its eight components. In order from the largest positive contributor to the smallest contributing gain, they were: Industrial Production, Real Manufacturing and Trade Sales, Initial Claims for Unemployment Insurance, Ratio of Involuntarily Part-Time to All Part-Time Workers, Number of Temporary Employees, and Job Openings.
Monday’s ETI report rarely moves the markets because it generally comes out after the key unemployment and payrolls report. Friday’s payrolls helped to add a stable base to the markets, and the ETI only supports the notion that the jobs market remains firm. Another boost here is that higher revision for August, and it marks the ninth consecutive month of being positive and should be enough to signal strength through the end of this year.
The Conference Board said:
A combination of positive and negative forces has been driving the rapid decline in the unemployment rate in recent years. Hiring is strong, but productivity growth is weak, and the participation rate continues to decline. None show signs of reversing.
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