Economic wrap: eyes on nonfarm payrolls - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US ISM manufacturing survey rose from 51.9 to 53.2 (52.5 expected). Producer sentiment has been boosted by oil prices and inventories are becoming less of a drag. Markit’s PMI was revised higher from 53.9 to 54.1. Construction spending rose 0.5% in Oct (0.6% expected), which follows a strong Q3. Jobless claims rose from 251k to 268k (253k expected) during a holiday-disrupted period.

Economic Event Risks Today

Australian retail sales saw better gains through Aug/Sep, albeit driven by prices rather than volumes. We expect a 0.3% gain in Oct.

US nonfarm payrolls should rise 170k in Nov following a 161k gain in Oct (consensus is +180k). The unemployment rate is likely to be unchanged on stable participation. ADP data points to modest upside risks."