We may want to wait for another month or so to be sure that such gains were truly reflective of a upward trend and not just a possible distortion arising from the temporary 'hurricane-related' loss of many lower-paying service sector jobs,
As the economy gains traction, we'll have demand increasing. And if we have supply contracting, it's a deadly mix. We will end up stunting any potential recovery.
Even though the gains this month are in fact indicative of a sustainable economic expansion, the magnitude of the gain was a bit exaggerated.
That report certainly reveals the recession is not over. The gains we had in September are not sustainable and illustrate why the central bank has to continue to lower rates. At this juncture, the easing of rates basically is serving as a consumer confidence booster.