U.S. economy adds 172,000 jobs in May, beating forecasts

This is the third consecutive month of solid job gains. The unemployment rate remained unchanged at 4.3%, matching forecasts, while the labor force participation rate held steady at 61.8%.

The leisure and hospitality sector led job creation, adding 70,000 positions, more than double the increase recorded in April as businesses prepared for the summer season.

The healthcare industry contributed 47,000 jobs, while the construction sector posted modest gains for a third straight month.

In contrast, retail trade, information technology, and financial services recorded employment declines.

The positive data comes as the economy continues to recover from weaker employment trends seen last autumn and winter. Despite higher energy prices linked to the ongoing conflict involving Iran, now in its fourth month, U.S. employers have continued to open positions.

With over 90% of S&P 500 companies having already reported first-quarter results, annual earnings per share growth stands at around 29%.

Consumer sentiment, however, presents a more mixed picture. Confidence indicators have fallen to record lows amid concerns over inflation and gasoline prices. Nevertheless, overall consumer spending has remained resilient, supported largely by upper-middle-income households.