Disappointing ADP employment report pose fresh doubts on US labor market

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

ADP number shows US economy and its labor markets are slowing down.

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

• U.S. labor market has weakened again.

• September payroll got a revision. It has now revised to 202,000 (up from 175,000). August was revised higher to 162,000 (-15,000).

Key highlights –

• Non-farm private sector employment grew at 147,000 in October, median expectation was for 166,000.
• Small business sector hiring at 34,000, compared to 34,000 last month.
• Employment in franchise increased to 24,5000 compared to last month’s 26,000.
• Mid-sized companies added 48,000 jobs compared to last month’s 56,000 jobs.
• Large sector added just 64,000 compared to last month’s 64,000 jobs.
• Manufacturing sector payroll registered 1,000 jobs losses compared to 6,000 job losses last month.
• 18,000 jobs were lost in goods producing sector, compared to last month’s 3,000 jobs gain.
• Construction sector saw 15,000 jobs losses, compared to last month’s 11,000 jobs gain.
• Services sector employment remains robust as payroll added 165,000 people in September. September gains were 151,000.

Dollar index is currently trading at 97.4, down by 0.4% for the day so far. The focus is on FOMC monetary policy report.