Consensus on non-farm jobs in the United States beats consensus in March by Investing.com

Investing.com – The US economy has created more jobs than expected in March, relieving a sigh of relief in the markets after recent signs of weakness.

(NFP) increased 196,000 in March, exceeding expectations set at 175,000, as planned, at 3.8%, as expected.

Job creation in March restored confidence in the state of the job market after the small increase in the number of positions in February. ADP's Wednesday report, which said the US economy had added the least in 18 months in March, was also a source of concern.

In an immediate reaction, US futures contracts extended their gains after publication with an increase of 0.4% compared to 0.1% ahead of the report. The, which measures the greenback against a basket consisting of major currencies, gained some support, became positive even though it remained close to the mark unchanged.

Another positive sign for equities, annualized growth of 3.2% slowed compared to the previous month (3.4%). Economists did not expect any change.

The slowdown in wage inflation has reinforced the Federal Reserve's recent decision to be "patient" and to tighten its policy further.

The Fed left interest rates unchanged in its March policy decision and announced it was no longer planning a hike in 2019. Meanwhile, it announced it would stop cutting its bond portfolio in September.

The two concordant initiatives imply that policymakers have become more concerned about the economic outlook.

Some analysts suggest that the next rate change could be a reduction if fears about the US and global economies, plagued by current market uncertainties, become a reality.

Sluggish global growth, particularly in China and Europe, coupled with volatile financial markets and controlled inflation, has reinforced the Fed's "patient" stance.