US: Waning wage growth – RBS

Analysts at the Royal Bank of Scotland note that the US non-farm payrolls surprised on the downside in May, rising only 75k, while the March and April data were revised down sharply.

Key Quotes

“The pace of jobs growth in the service sector halved last month, manufacturing hiring barely rose. Wage growth is also cooling, rising 3.1% in the year to May.”

“Federal Reserve Chair Powell stressed the central bank was “closely monitoring” the impact of trade tensions on the US economy. Further evidence that rising global headwinds are adversely impacting US domestic demand would intensify pressure on the Fed to cut rates, possibly this summer.”