US: Job growth likely to slow to 175k in July - Nomura

Analysts at Nomura are looking for US job growth to slow to 175k in July, slightly below the market consensus for 192k but well above the breakeven pace.

Key Quotes

“Wages should reinforce the downbeat tone with a 0.2% m/m increase in average hourly earnings, which would leave wage growth unchanged at 2.7% y/y (market: 0.3% m/m, 2.7% y/y) One bright spot should be the unemployment rate, which we expect to slip to 3.9%, in line with the market consensus.”

“ISM Non-Manufacturing for July will be released shortly afterward and the market looks for a slight decline to 58.6.”