Spring of hope or winter of despair?

Last week was the best of times and the worst of times. Just as it looked as though the US recoverywas finally moving into a higher gear, as credit conditions eased and the fiscal drag faded, the142,000 gain in August payrolls sparked fears of another false dawn. With economic growthapparently running at more than 3% annualised, however, we strongly suspect that the modest gainin August payrolls was an isolated blip, particularly as other labour market indicators have remainedat relatively strong levels.