US ADP Report: Job growth points to strong U.S. economy

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

ADP number shows the US labor markets remains strong.

There are two things to note in the headline that,

• ADP report indicates underlying strength in the economy. Trump effect hasn’t faded completely.

• July payroll got a revision. It has now revised to 191,000 (up from 158,000).
   

Key highlights –

• Non-farm private sector employment grew at 178,000 in August, the median expectation was for 185,000.
• Small business sector hiring at 48,000, compared to 50,000 last month.
• Employment in franchise increases to 21,200 compared to last month’s 26,600.
• Mid-sized companies added 74,000 jobs compared to last month’s 83,000 jobs.
• The Large sector added just 45,000 compared to last month’s 45,000 jobs.
• Manufacturing sector payroll registered 16,000 jobs gain compared to 4,000 jobs loss last month.
• 33,000 jobs were gained in goods producing sector, compared to last month’s 4,000 jobs gain.
• The construction sector saw 18,000 jobs gain, compared to last month’s 6,000 jobs gain.
• Services sector employment remains robust as payroll added 204,000 people in August. July gain was 174,000.

The dollar index is currently trading at 92.61, up 0.3% for the day so far.