US jobs data has positive aspects

Recent US jobs data releases have given credence to the contention of Marsico Capital Management that the US economy is slowing in a measured but sustainable fashion, according to Cory Gilchrist, manager of the Gartmore US Opportunities Fund and Gartmore SICAV US Opportunities Fund. “The employment numbers were indicative of some slowing of the economy not a lunge into recession,” he added. Marsico, which is subadviser to both the Gartmore US Opportunities, Gartmore US Growth Fund and Gartmore SICAV US Opportunities Fund, has positioned these funds to take account of a less vigorous rate of growth. Accordingly, the funds are maintaining some direct international exposure and holdings with significant overseas earnings,such as hotel/casino operators Las Vegas SandsandWynn Resorts, in orderto benefit from relatively strong global growth.

The US Department of Labor revealed that employment rose in September, with 110,000 new jobs added in that month, higher than the 100,000 tally predicted by economists. Additionally, revised figures showed the labour market was stronger in August than first thought. Rather than a loss of 4,000 jobs in August as initially estimated, 89,000 new jobs were actually created. US shares rose on news of the better-than-expected figures, with the Dow Jones Industrial Average touching a then record trading high, and the broader S&P 500 index closing at its then highest ever on September's final trading day (28 September).(The Dow Jones and S&P 500 indexes have since both set new record highs on Tuesday 9 October after the release of the minutes of the Federal Reserve's 18 September meeting.)