Augusta Saraiva

Non-farm payrolls increased 254,000 in September, the most in six months.

The value of retail purchases, unadjusted for inflation, increased 0.1% after a revised 1.1% gain in July, largely thanks to online retailers.

In August, the core CPI increased 2.1% on a three-month annualized basis, picking up from 1.6% in July.

Private payrolls increased 99,000 in August, and the prior month's jobs gain was revised lower.

On a three-month annualized basis, the core PCE price index advanced 1.7%, the slowest this year, reinforcing the wisdom of Fed interest rate cuts next month.

This is an upward revision, reflecting stronger consumer spending on goods and services—particularly in healthcare, housing and utilities, and recreation.

"This doesn't challenge the idea we're still in an expansion, but it does signal we should expect monthly job growth to be more muted and put extra pressure on the Fed to cut rates."

Several big banks are projecting large negative revisions to Q1 jobs numbers, suggesting the labor market has been cooling for longer—and perhaps more dramatically—than originally thought.