Goldman Sachs: US NFP preview

Goldman Sachs analysts are out with their US Non-Farm Payrolls preview, and they are calling for a better-than-consensus showing for the indicator.

Key quotes

"We estimate that nonfarm payrolls increased 200k in June, slightly above consensus.

Our forecast reflects strong employment surveys across both manufacturing and services. 

Our forecast also embeds solid summer hiring of students and recent graduates, and we note that job growth tends to accelerate in June when the labor market is tight. 

We expect the unemployment to round down to 3.7% in tomorrow's report.

We estimate a 0.3% month-over-month increase in average hourly earnings, reflecting favourable calendar effects. 

This would boost the year-over-year rate by a tenth to 2.8%."