Strong May jobs data show US economy back on track

US employers are evidently looking through the recent economic weakness and anticipate a strengthening in demand as they added 280k jobs in May. This supports our view that the US economy is meanwhile back on track, said Commerzbank.

The unemployment rate ticked higher to 5.5% but only because the recovery is drawing persons who were previously not looking for a job back to the jobs market. In another sign of a healing labor market, wages have increased more than expected. 

Thus the report should increase confidence at the Fed that the time will soon be ripe for a first rate hike, adds Commerzbank.