Fed: Economists raise chances of higher rates after strong data

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Fed: Economists raise chances of higher rates after strong data

Economists have raised the prospect of higher interest rates after stronger than expectedjob figures and stubbornly high housing investment.

Australian Bureau of Statistics data shows 60,400 new jobs were created in November-- almost all of them full-time.

But the unemployment rate nevertheless climbed a notch to 6.1 per cent.

Employment Minister TONY ABBOTT says he expects solid job growth in the months ahead,despite the drought and the weak world economy.

Economists say the strong Australian economy should ensure the unemployment rate resumesfalling next year.

Also out today were lending figures showing investor activity still rising in the propertymarket.

Salomon Smith Barney economic director STEPHEN HALMARICK says this suggests investorsremain active in the housing market and this must be a concern to the RBA.

AAP RTV jph/jas/

KEYWORD: ECONOMY (CANBERRA)