US job creation stronger in October

The US economy added 204,000 jobs in October, according to the latest figures from the Labour Department of the country.

There had been fears that the 16-day shutdown of government services last month could have hit job growth.

The monthly non-farm payroll figure is taken as a key indicator of the health of the world's biggest economy.

However, the latest figures also showed that the unemployment rate edged up to 7.3% from 7.2% in September. The Labour Department said that this was likely to be because many federal workers were counted as unemployed during the shutdown.

The report also said that employers added 60,000 more jobs in September and August than earlier estimates had suggested.

The US economy grew at an annual pace of 2.8% in the third quarter. Investors are closely watching the US economy, with signs of growing strength likely to raise expectations that the US Federal Reserve will begin to scale back its massive economic stimulus program.

The chief economist at the researchers Markit, Chris Williamson said that the jobs figure had "defied" expectations of a slump in jobs creation due to the shutdown.

"Analysts were expecting a mere 125,000 rise," he said.

"The data will add to the view that the Federal Reserve is gearing towards a tapering of its asset purchases, but policy makers will most likely wait for clearer signs that the economy will grow at a faster rate than seen in recent months, that will eat into unemployment."

The Commerce Department said that growth had been lifted by rising exports and a pick-up in construction of homes.

However, it also said that the pace of growth in consumer spending - which accounts for about two-thirds of US economic activity - had slowed from the previous quarter.

BBC