US adds more jobs than expected

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US employers added 132,000 new jobs in June, higher than market expectations.

In a sign that economic growth may have quickened since the start of the year, the Labor Department also revised its April and May figures upwards.

Despite the much-reported downturn in the US housing market, 190,000 new jobs were created in May, up from 157,000, and 122,000 in April instead of 80,000.

US economic growth in the first three months of this year was the slowest level in four years.

Weak manufacturing

The US unemployment rate was 4.5% in June, unchanged from May.

In the long run, you want a strong economy, a tight labour market means the economy is growing, not losing steam Economist Michael Darda

All the new jobs in June came in the service sector, which added 135,000 new positions.

By contrast, there were 18,000 less jobs in manufacturing.

The figures for US economic growth from April to June will be released later this month.

"Ultimately, this should not be bad for stocks," said Michael Darda, chief economist at MKM Partners.

"Sometimes with a jobs report that is strong, there is this knee jerk reaction that the Fed is going to hike rates.

"But in the long run, you want a strong economy, a tight labour market means the economy is growing, not losing steam."