US: Expect 200k increase in nonfarm payroll - Nomura

Analysts at Nomura suggest that all signs are that the US labor market “remains strong,” consistent with the December FOMC statement.

Key Quotes

“We forecast a 200k increase in nonfarm payroll employment for December (Consensus: 190k), consistent with sustained economic momentum to end 2017. Average hourly earnings likely increased 0.3% m-o-m (Consensus: 0.3%), partly boosted because of calendar timing. Finally, we expect the unemployment rate to decline 0.1pp to 4.0% (Consensus: 4.1%).”