US ADP Report: Payroll growth shrinks sharply

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 that the economy is still adding jobs at a fast pace.

• July payroll saw a revision, where the headline was revised down to 217,000 (from 219,000).

Key highlights –

• Non-farm private sector employment grew at 163,000 in August, the median expectation was for 190,000.
• The small business sector added 21,000 jobs, compared to 52,000 gain last month.
• Employment in franchise rose by 20,700, compared to last month’s 15,100 job gain.
• Mid-sized companies added 111,000 jobs compared to last month’s 119,000 jobs.
• The large sector added just 31,000 compared to last month’s 48,000 jobs.
• Manufacturing sector payroll registered 19,000 jobs gain compared to 23,000 jobs gain last month.
• 24,000 jobs were gained in the goods-producing sector, compared to last month’s 42,000 jobs gain.
• The construction sector added 17,000 jobs, compared to last month’s 17,000 jobs gain.
• Services sector remains the main job provider as payrolls added 139,000 people in August. July gain was 177,000.

Dollar index is currently trading at 95.06, down 0.13 percent for the day so far.