US ADP employment report suggests steady October payroll growth

The ADP employment report for October showed private payroll growth of 182k, in line with consensus expectations (180k) and broadly in line with recent trends. The ADP estimate of September job growth was revised down to 190k from the initial estimate of 200k. Goods-producing employment growth staged a modest rebound in October, with 24k jobs added (previous: 8k). Within that, construction payrolls rose 35k (previous: 34k) and manufacturing employment fell 2k (previous: -17k).

Service sector employment growth moderated to 158k in October, down from the revised print of 182k in September. Trade, transportation and utilities (35k, previous: 38k) and financial activities (9k, previous: 12k) had job growth in line with recent trends. Professional and business services employment growth moderated to 13k (previous: 31k).

"We place limited weight on the ADP employment report, given the history of frequent revisions. For Friday's official employment report from the Labor Department, we expect nonfarm payroll growth of 175k and a one-tenth decline in the unemployment rate, to 5.0%",says Barclays.