What’s top of investors’ minds this week?
US payroll employment of 139k in May exceeded the consensus expectation for 126k, but prior month gains were revised down 95k. US employment growth is clearly slowing. What matters most for near-term consumption growth is that aggregate weekly payrolls growth (what businesses paid to employees) remained robust at 5.0% yoy. If the May CPI to be released this week meets consensus expectations for 2.5% yoy it would imply that real payroll income for households continued to grow 2.5% yoy in May, a healthy rate.
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