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BBH: jobs report to highlight heavy weekly slate of U.S. economic data

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(Kitco News) - Traders have a heavy slate of U.S. economic data to digest this week, culminating in the monthly jobs report on Friday, said Brown Brothers Harriman. Monday brings the Institute for Supply Management’s Purchasing Managers Index for the manufacturing sector, expected to improve to 43.7 from 41.5 in April, BBH said. The ISM non-manufacturing PMI is set for Wednesday and expected to improve to 44.5 from 41.8 in April. May auto sales will be reported Tuesday and are expected to improve to an annualized rate of 11 million from 8.58 million in April. “May U.S. jobs data Friday will be the main event,” BBH said. Analysts said the consensus estimate is for the Friday report to show a loss of 8 million nonfarm jobs after a decline of 20.54 million in April. Unemployment is seen rising to 19.6% from 14.7% in April. “Ahead of that, there will be some other labor-market readings,” BBH said. This includes the ADP private-sector jobs report on Wednesday, with consensus expectations calling for a decline of 9.5 million jobs. Also, weekly jobless claims due out Thursday are expected to rise by another 1.8 million. “If so, this would mean that around 43 million have become jobless over the last nine weeks, which is nearly 30% of the labor force,” BBH said. “The good news is that continuing claims fell last week for the first time since the pandemic began, and by a whopping 3.86 million. This suggests some workers have been able to go back to work in May, and consensus sees another 2 million drop here.”

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