US: Focus on JOLTS job openings and wholesale inventories data – Nomura

Analysts at Nomura point out that the JOLTS Job openings remained elevated in June for the US economy with the ratio of vacancy postings to unemployed workers at 1.01, indicating continued labor market tightness.

Key Quotes

“In addition, the quits rate remains elevated at 2.3%, matching its pre-recession high. While labor market turnover remains subdued, continued tightening in the labor market should put modest upward pressure on wage growth.”

“Wholesale inventories: Advance data released by the Census Bureau suggest that wholesale inventories increased strongly by 0.7% m-o-m with solid gains in durable goods inventories. The final estimate of wholesale inventories should reaffirm strong inventory build-up by wholesalers. Based on incoming data, we expect solid contribution from inventory accumulation to real GDP growth in Q3.”