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6 Feb 2015
Boost in average hourly wages biggest surprise in today’s US data release – ING
FXStreet (Barcelona) - Rob Carnell of ING, reviews the US labour market data release, and views that the strong picture painted by the NFP and wages puts a June rate hike by the Fed back into consideration.
Key Quotes
“A very strong labour market report has put a June rate hike by the Fed back into the picture after a month of rather disappointing data.”
“Non-farm payrolls came in well above expectations at 257K, with large upward revisions (annual revisions take place in January) to the previous two months data (+147K), and importantly, given the shock decline last month, a big rise in the hourly wages numbers (+0.5%) taking the annual wages growth rate up to 2.2% from an upwardly revised 1.9%.”
“With wages turning higher, the Fed can justify ignoring the plummeting headline inflation rate, and instead, focus more on core inflation and wages. A little bit of more positive activity data would also help the Fed hawks.”
“About the only fly in the ointment in this release was the unemployment rate, and even this is really evidence more of the huge surge in the labour force (1.051m) alongside an impressive 759K increase in the household survey employment change.”
“Such a rise is probably statistical noise, but it could also be evidence of greater optimism about the chances of gaining work, and a return to the labour market by marginally inactive people.”
Key Quotes
“A very strong labour market report has put a June rate hike by the Fed back into the picture after a month of rather disappointing data.”
“Non-farm payrolls came in well above expectations at 257K, with large upward revisions (annual revisions take place in January) to the previous two months data (+147K), and importantly, given the shock decline last month, a big rise in the hourly wages numbers (+0.5%) taking the annual wages growth rate up to 2.2% from an upwardly revised 1.9%.”
“With wages turning higher, the Fed can justify ignoring the plummeting headline inflation rate, and instead, focus more on core inflation and wages. A little bit of more positive activity data would also help the Fed hawks.”
“About the only fly in the ointment in this release was the unemployment rate, and even this is really evidence more of the huge surge in the labour force (1.051m) alongside an impressive 759K increase in the household survey employment change.”
“Such a rise is probably statistical noise, but it could also be evidence of greater optimism about the chances of gaining work, and a return to the labour market by marginally inactive people.”