Disappointing ADP employment report pose doubts on resilience of the economy

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

ADP number shows US economy and its labor markets are resilient and the recent momentum loss is stabilizing.

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

• U.S. labor market has weakened again.

• August payroll got a revision. It has now revised to 175,000 (down from 177,000). June was revised higher to 196,000 (+2,000).

Key highlights –

• Non-farm private sector employment grew at 154,000 in September, median expectation was for 166,000.
• Small business sector hiring at 34,000, compared to 63,000 last month.
• Employment in franchise increased to 26,000 compared to last month’s 19,200.
• Mid-sized companies added 56,000 jobs compared to last month’s 44,000 jobs.
• Large sector added just 64,000 compared to last month’s 70,000 jobs.
• Manufacturing sector payroll registered 6,000 jobs losses compared to no gains last month.
• 3,000 jobs were added in goods producing sector, compared to last month’s 6,000 jobs losses.
• Construction sector saw 11,000 jobs gain, compared to last month’s 6,000 job losses.
• Services sector employment remains robust as payroll added 151,000 people in September. August gains were 183,000.

Dollar index is currently trading at 96.15, up by 0.05% for the day so far. The dollar hasn’t weakened much despite weakness in the report.