US NFP: Closing out Q2 on a strong note – Nomura

According to analysts at Nomura, the June employment report of US reaffirmed solid economic momentum going into Q3 as nonfarm payroll employment increased by 213k (Nomura: 210k, Consensus: 195k).

Key Quotes

“A solid gain in manufacturing data provides additional evidence that trade uncertainty has yet to feed into economic data. Average hourly earnings increased 0.2%, matching our expectations (Nomura: 0.2%, Consensus: 0.3%), indicating an unchanged wage growth trend.”

“Finally, the unemployment rate increased 0.2pp to 4.0% (Nomura: 3.7%, Consensus: 3.8%), partly as a result of nonparticipants rejoining the labor force, pushing up the labor force participation rate 0.2pp to 62.9%.”