UK house prices rose at a staggering 10.9% year on year in May according to the Nationwide Building Society (NBS) index, the highest for nearly seven years; indeed May’s month-on-month at 1.8% was double expectations. NBS said price rises were widespread with urban areas performing extremely well spurred on by low interest rates and the stamp duty holiday, which is in place until September on properties up to £250,000. There is a great deal of pent up demand in the market after last year's closedown and the previous uncertainty regarding Brexit, with demand outstripping supply by a margin which is adding to the upward pressure on pricing.
So to today’s NFP for May which came in at 559,000 jobs added, below expectations of 675,000 jobs (Bloomberg survey). The prior month’s figure was revised up to 278,000 from 266,000. The unemployment rate came in at 5.8% versus expectations of 5.9% and the prior month’s reading of 6.1% while the participation rate for May edged lower to 61.6% from the prior month of 61.7%. Average hourly earnings grew 0.5% on the month versus the prior month of 0.7% mom and expectations of 0.2% mom.