MW: Economists see weaker Oct. job data in wake of Wed. data
By Greg Robb
WASHINGTON (MarketWatch) -- Several economists now see a weaker job report in October as a result of the most recent eonomic data released Wednesday. "After assessing the latest data for October, we have lowered our payrolls forecast to a decline of 220,000 from a preliminary forecast of [a drop of] 190,000," the economic team at BNP Paribas said in a note to clients. Action Economics, which in the past has been relatively optimistic about the economy, said it also now sees job losses approaching 220,000, with the risk of an even larger decline. "It i clear that financial dislocation is now inflicting a sizable shock on the U.S. labor market, following nearly a year of notable resilience that seemingly ended abruptly in August or early September," the Action team wrote in a research note. The weak data released Wednesday included a 157,000 drop in the October ADP employment report and a sharp drop in the employment sub-index in the October ISM service sector survey to 41.5, the lowest level since 1997.
