US ADP Report: Report points to stagnating job growth

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

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 remains active completely as the goods-producing sector adding jobs, especially manufacturing. However, employment growth has been stagnating around 175,000 per month, much lower than 241,000 recorded in February.

• May payroll saw a revision, where the headline was revised up to 189,000 (from 178,000).

Key highlights –

• Non-farm private sector employment grew at 177,000 in June, the median expectation was for 185,000.
• The small business sector added 29,000 jobs, compared to 38,000 gain last month.
• Employment in franchise rose by 13,800, compared to last month’s 29,500 job gain.
• Mid-sized companies added 80,000 jobs compared to last month’s 84,000 jobs.
• The large sector added just 69,000 compared to last month’s 56,000 jobs.
• Manufacturing sector payroll registered 12,000 jobs gain compared to 14,000 jobs gain last month.
• 29, 000 jobs were gained in the goods-producing sector, compared to last month’s 64,000 jobs gain.
• The construction sector added 13,000 jobs, compared to last month’s 39,000 jobs gain.
• Services sector employment remains high as payroll added 148,000 people in June. May gain was 114,000.

The dollar index is currently trading at 94.24, down 0.31 percent for the day so far.