ICAP's Adam Carr comments:
"Actually while we’re talking about jobs I received a few emails from people asking me to explain this supposed discrepancy between the growth figures and jobs growth. Doesn’t make sense right? Weak GDP and strong jobs growth. Well the reality is, there is no discrepancy. They are telling us the same thing, but you need to know where to look. Headline GDP was weak do to a fall in export growth (following a surge in Q2) and an unanticipated decline in inventories (business underestimating demand). Domestic demand on the other hand (consumption, investment and government spending) is strong. Well above trend and, as you would expect, that is creating a lot of jobs. Problems of interpretation arise when people don’t really know what to look at, but at the end of the day, the problem is one of misinterpretation rather than any genuine discrepancy."
