Nonfarm payrolls: watching key average earnings - Nomura

Analysts at Nomura explained that for average hourly earnings in tomorrow's nonfarm payrolls, they expect a healthy 0.34% m-o-m increase, corresponding to a 2.69% y-o-y gain.

Key Quotes:

"Average hourly earnings have unexpectedly decelerated over the past three months, posing something of a puzzle in terms of when wage growth will notably accelerate as labor market slack continues to diminish."

"This question may pose less of a dilemma to FOMC officials in the coming months."

"The most recent minutes from the June meeting indicate that some FOMC participants have begun to accept the notion that wage growth remains within an expected range given low productivity growth and subdued price inflation."