US ADP Report: Report points to strong economic growth

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

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.

• June payroll saw a revision, where the headline was revised up to 189,000 (from 177,000).

Key highlights –

• Non-farm private sector employment grew at 177,000 in July, the median expectation was for 185,000.
• Small business sector added 52,000 jobs, compared to 29,000 gain last month.
• Employment in franchise rose by 15,100, compared to last month’s 13,800 job gain.
• Mid-sized companies added 119,000 jobs compared to last month’s 80,000 jobs.
• Large sector added just 48,000 compared to last month’s 69,000 jobs.
• Manufacturing sector payroll registered 23,000 jobs gain compared to 12,000 jobs gain last month.
• 42,000 jobs were gained in the goods-producing sector, compared to last month’s 29,000 jobs gain.
• The construction sector added 17,000 jobs, compared to last month’s 13,000 jobs gain.
• Services sector employment remains high as payroll added 177,000 people in July. June gain was 148,000.

The dollar index is currently trading at 94.57, up 0.02 percent for the day so far.