ADP points to momentum loss of labor market

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

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

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

• Job growth is much weaker in last two months, compared to previous ones.

• April payroll marginally revised to 166,000 (up from 156,000).

Key highlights –

• Non-farm private sector employment grew at 173,000 in May, median expectation was for 178,000.
• Small business sector hiring at 76,000, compared to 93,000 last month.
• Employment in franchise increased to 19,400 compared to last month’s 14,100.
• Mid-sized companies added 63,000 jobs compared to last month’s 39,000 jobs.
• Large sector added just 34,000 compared to last month’s 24,000 jobs.
• Manufacturing sector payroll declined by 3,000 jobs compared to 14,000 jobs losses last month.
• 1,000 jobs were lost in goods producing sector, compared to last month’s 11,000 jobs losses.
• Construction sector added 13,000 on payroll, compared to last month’s 14,000.
• Services sector employment remains robust as payroll added 175,000 people in May. April gains were 166,000.

Dollar index is currently trading at 95.29, down -0.14% for the day so far.