ADP points to momentum loss in labor market

Today ADP employment numbers were released from US for the month of June.

ADP number shows US economy and its labour markets is resilient in second quarter but lost some steam.

There are two things to note even in the headline that,

• Job growth is much weaker in April and May but the decline seems to be stabilizing.
   
• May payroll marginally revised to 168,000 (down from 173,000). April was revised lower to 149,000.

Key highlights –

• Non-farm private sector employment grew at 172,000 in June, median expectation was for 159,000.
• Small business sector hiring at 95,000, compared to 76,000 last month.
• Employment in franchise increased to 40,700 compared to last month’s 19,400.
• Mid-sized companies added 52,000 jobs compared to last month’s 63,000 jobs.
• Large sector added just 25,000 compared to last month’s 34,000 jobs.
• Manufacturing sector payroll declined by 21,000 jobs compared to 3,000 jobs losses last month.
• 36,000 jobs were lost in goods producing sector, compared to last month’s 1,000 jobs losses.
• Construction sector saw 5000 job losses, compared to last month’s 13,000 gains.
• Services sector employment remains robust as payroll added 208,000 people in June. May gains were 175,000.

Dollar index is currently trading at 95.99, down -0.15% for the day so far.