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AHE Stronger Than Expected But Flattered By Rounding

US DATA

AHE came in stronger than expected but it was flattered by rounding. Nevertheless, it continues to be far stronger than what the FOMC will be comfortable with.

  • Total AHE increased 0.36% M/M (cons 0.3) after 0.36% M/M (initial 0.33), although an additional upward revision for April does begin to add up with 0.42% M/M (initial 0.39%).
  • It meant the Y/Y printed 4.35% (showing 4.4 on screens vs cons 4.2) for no progress from the 4.37% Y/Y in May.
  • Unlike in recent months, the non-supervisory measure offered a softer take at least compared to prior readings. It increased 0.38% M/M after 0.38% (initial 0.45%) in May and 0.32% (initial 0.35%) in April.

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