US: Payrolls likely to increase by 150k in June - TDS

Analysts at TD Securities are looking for the US Nonfarm payrolls to increase by 150k in June, following the soft 75k print in the previous month.

Key Quotes

“In particular, we expect job creation in the manufacturing sector to stay subdued, remaining in the single-digit range for a third consecutive month. This should keep employment in the goods sector soft despite our anticipation for some minor improvement in construction sector jobs.”

“Likewise, we forecast employment in the services sector to register a modest rebound following the weak 82k print in May.”

“Separately, the household survey should show the unemployment rate remaining steady at 3.6%, while wages are expected to rise 0.3% m/m on the back of a favorable reference week. The latter should bring the annual print up a tenth to 3.2% in June.”