Blockbuster ADP report provides fuel to further dollar gains

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

ADP number shows the US economy and its labor markets are resilient and might be on the way to reverse the recent weakness.

There are two things to note in the headline that,

• Impressive strength after successive months of weakness.

• September payroll got a revision. It has now revised to 119,000 (down from 147,000). August was revised lower to 196,000 (-6,000).

Key highlights –

• Non-farm private sector employment grew at 216,000 in November, median expectation was for 160,000.
• Small business sector hiring at 37,000, compared to 34,000 last month.
• Employment in franchise increased to 15,100 compared to last month’s 24,500.
• Mid-sized companies added 89,000 jobs compared to last month’s 48,000 jobs.
• Large sector added just 90,000 compared to last month’s 64,000 jobs.
• Manufacturing sector payroll registered 10,000 jobs losses compared to 1,000 job losses last month.
• 11,000 jobs were lost in goods producing sector, compared to last month’s 18,000 jobs losses.
• Construction sector saw 2,000 jobs gain, compared to last month’s 15,000 jobs losses.
• Services sector employment remains robust as payroll added 228,000 people in November October gains were 165,000.

Dollar index is currently trading at 101.18, up by 0.19% for the day so far.