US ADP employment report suggests solid November job growth

The ADP employment report for November showed private payroll growth of 217k, modestly above consensus expectations (190k) and consistent with a slight uptick in the pace of job growth from the revised October reading of 196k (initial: 182k). Goods-producing employment fell back in line with its trend at +13k jobs, down from 22k last month. Within that, construction payrolls rose 16k (previous: 32k) and manufacturing employment grew 6k (previous: -2k).

Service sector employment growth rebounded in November with a print of 204k (previous: 174k), driven by better job growth in professional and business services (59k, previous: 19k). Trade, transportation and utilities (30k, previous: 36k) and financial activities (9k, previous: 11k) reported employment growth in line with recent trends.

"We place limited weight on the ADP employment report given the history of revisions and frequent divergence with the Labor Department's initial estimates. That said, this morning's print is consistent with our outlook for nonfarm payroll growth of 200k and a one-tenth decline in the unemployment rate in Friday's official employment report", says Barclays.