US Economy Shows Signs Of Improvement in July

Jobs in United States in the month of July rose at a healthy pace providing further signs of improvement in economy that could allow the Federal Reserve to raise interest rates in September.

A recent survey conducted by Reuters showed that US nonfarm payrolls increased by 223,000 in the last month, which would be slightly above the monthly average for the first half of the year.

It has been said that the pace of hiring has slowed down from last year, but it remained double the rate that was needed to keep up with population growth.

The Labor Department will release its closely watched employment report on Friday at 8:30 a. m. (1230 GMT). The report will help the Federal Reserve to decide whether the U. S. economy is ready for it to raise interest rates from record lows as soon as September.

Millan Mulraine, deputy chief economist at TD Securities in New York, said, "We expect this report to deliver a further jolt to the Fed's confidence in their relatively optimistic economic outlook and further solidify the bias for a September hike".

The Fed in the previous month upgraded its assessment of the labor market, describing it as continuing to improve, with solid job gains and declining unemployment.

However, there is a lot of uncertainty surrounding July's payrolls forecast after data vendor ADP this week reported a sharp slowdown in private sector hiring last month.