US ADP Report: Report points to strong U.S. economy and weakness in services sector

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

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 goods-producing sector adding jobs, especially manufacturing.

• April payroll saw a revision, where the headline was revised down to 163,000 (from 204,000).

Key highlights –

• Non-farm private sector employment grew at 178,000 in May, the median expectation was for 190,000.
• The small business sector added 38,000 jobs, compared to 62,000 gain last month.
• Employment in franchise rose by 29,500, compared to last month’s 10,600 job loss.
• Mid-sized companies added 84,000 jobs compared to last month’s 88,000 jobs.
• The large sector added just 56,000 compared to last month’s 54,000 jobs.
• Manufacturing sector payroll registered 14,000 jobs gain compared to 10,000 jobs gain last month.
• 64, 000 jobs were gained in the goods-producing sector, compared to last month’s 44,000 jobs gain.
• The construction sector added 39,000 jobs, compared to last month’s 27,000 jobs gain.
• Services sector employment remains high as payroll added 144,000 people in April. April gain was 160,000.

The dollar index is currently trading at 94.24, down 0.61 percent for the day so far.