The US economy created 132,000 new jobs in June, according to official non-farm payroll figures, signalling solid economic growth despite a struggling housing market.

The official numbers beat economists’ forecasts of about 125,000. A jobless rate of 4.5 per cent jobless rate was in line with expectations.

The report appeared to support the Federal Reserve’s view that the economy is pulling out of the first-quarter soft patch, despite a persistent slump in the housing sector, analysts said.

Nigel Gault , the global Insight economist, said: “Today’s report adds to the evidence that the economy bounced back in the second quarter, probably to the 3.0 to 3.5 per cent range, from the anaemic 0.7 per cent GDP growth rate in the first quarter.”

The Labor Department also upwardly revised US job gains in April and May by a total of 75,000. That meant 190,000 jobs were gained in May - the biggest increase since December 2006 - from an initial estimate of 157,000, and 122,000 in April, up sharply on the 80,000 earlier estimates.

Andrew Busch, of BMO Capital Markets, said: “All in, this is still a solid economic report, which shows the US economy is weathering the housing slowdown.”

Average hourly wages, a measure of wage inflation pressures, rose 0.3 per cent in June and were up 3.9 per cent on a 12-month basis.

Joel Naroff of Naroff Economic Advisors, said: “The solid increase in both jobs and wages tells us consumers will have the income to continue spending.”

Consumer spending fuels roughly two-thirds of US economic activity.

However, rising wages could worry the Federal Reserve, which last month held its key interest rate steady at 5.25 per cent. US rates have been flat since June 2006.

Stephen Gallagher, of Societe Generale, said: “The Federal Reserve will be encouraged about growth prospects, but the tightening of the labor market is a concern that will intensify in coming months.”

He added: “Sustained growth near three per cent will prompt declines in the unemployment rate by year-end, setting the stage for rate hikes by the Federal Reserve in the spring of 2008.”

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