US: Economy on strong footing – Deutsche Bank

Analysts at Deutsche Bank note that in the US the services PMI was actually revised up a fairly robust 1.1pts to 56.8 which puts the composite at 56.6 compared to 54.9 in April and the highest in over 3 years.

Key Quotes

“Backing the data up was the ISM non-manufacturing print for May which came in 2pts higher at 58.6 (vs. 57.6 expected). Notably prices paid rose to a very solid 64.3 from 61.8, meaning its edging closer to the 2017 seven-high of 65.9.”

“Finally the April JOLTS data, while backward looking, still showed an increasingly tight labour market. The number of job openings rose to a fresh record high of 6.698m (vs. 6.350m expected) with vacancies outpacing the number of unemployed workers. Meanwhile the quits rate remained at its cyclical high of 2.3%.”