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MNI U.S. Weekly Macro Wrap: Unemployment Rate Climbs Above FOMC End-2024 Forecast

Executive Summary

  • Nonfarm payrolls growth slightly beat expectations for June but that’s where the positive surprises ended, with heavy downward two-month revisions and a surprisingly high unemployment rate.
  • ISM services came in far weaker than expected in June whilst new orders plunged into contraction territory with its first sub-50 reading since Dec’22, Apr/May 2020 and before that mid-2009.
  • The S&P Global US services PMI contradicts though, rising to its highest level in over two years.
  • Continuing jobless claims extended their recent climb for fresh highs since Nov 2021.
  • Real GDP tracking for Q2 has been cut heavily after various softer releases to 1.5%.
  • Fed Funds implied rates have pushed solidly lower over the course of the week, back to fully pricing two 25bp cuts for the year (vs the single cut implied by the June dot plot) and 20-21bp of cuts for September.

PLEASE FIND THE FULL REPORT HERE:

US week in macro_240705.pdf

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