USD
The US jobs market produced a spring spurt to banish the winter weakness.
Employers added 280,000 jobs in May, the most in five months, further
dispelling fears that a first-quarter slowdown would take hold. Hourly earnings
climbed from a year ago by the most since August 2013, while an increase in the
number of people entering the US Jobs market caused the unemployment rate to
creep up to 5.5 percent from 5.4 percent. The report bolstered the case for

USD
The US jobs market produced a spring spurt to banish the winter weakness.
Employers added 280,000 jobs in May, the most in five months, further
dispelling fears that a first-quarter slowdown would take hold. Hourly earnings
climbed from a year ago by the most since August 2013, while an increase in the
number of people entering the US Jobs market caused the unemployment rate to
creep up to 5.5 percent from 5.4 percent. The report bolstered the case for
Federal Reserve policy makers to begin raising rates this year.

Broad-based employment gains from builders to trucking companies to local
governments show hiring managers are confident the economy will regain its
footing after faltering early this year. The dollar surged to a 13-year high
versus the Japanese yen and Treasuries tumbled.

May job growth was driven by a 256,000 jump in the private service sector.
Retailers, temporary-help agencies, restaurants, hotels and health-care
providers also boosted headcounts in May.

American workers are being compensated better. The Labor Department said
average hourly earnings increased 0.3 percent in May from the prior month, the
biggest gain since January.

GBP
The UK’s biggest business body (CBI) said that it believes the economy will
grow healthily for the remainder of the year, after stalling in the first three
months. To the surprise of most economists, the UK economy grew by just
0.3 per cent from January to March, its slowest rate since 2012. If it
continued expanding at that rate, economic growth would barely surpass 1.2 per
cent this year. Yet the Confederation of British Industry (CBI), which
represents around 190,000 firms, believes this will be a blip.

It predicts the economy will bounce back to grow by 2.4 per cent this year. The
rebound is expected to be immediate, with the business body anticipating 0.8
per cent growth in the economy from April to June. Despite growth
prospects looking healthy at home, the CBI warned there are headwinds to the
recovery, with a still sluggish Eurozone and renewed uncertainty over Greece’s
economic future.

The Eurozone is the UK’s biggest export market and its failure to achieve a
sustained economic recovery from the 2008-09 dip has impacted the UK’s trade
balance, the difference between exports and imports. This has acted as a drag
on growth.

Consumer spending accelerated in May as shoppers splashed out on hotels,
restaurants and bars. Spending climbed 2.6 per cent in May compared to the same
month last year. The last three months have seen the strongest three-month
average increase in expenditure since January 2008. Spending on hotels,
restaurants and bars shot up 10.3 per cent on the year. Consumers also spent
3.9 per cent more on recreation and culture. High street spending was 3.2 per
cent greater than it was in May 2014, the fastest gain for over a year. 

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