Job report hits perfect median

ADP comes in at 218K

ADP employment report

Employers added 218,000 new positions in July according to private payroll processor ADP in its latest report. The reading fell short of an expected gain of 230,000 according to the Bloomberg consensus of economists. Despite that shortfall, however, the reading is the third month in a row where job creation has exceeded 200,000. The services sector created 202,000 positions – down from 238,000 in June. Goods producing companies added just 16,000 positions in July and far fewer than delivered in the June report when employers added 42,000 jobs.

Worth noting, amid the apparent slowdown for the housing sector, is the addition of only 12,000 construction jobs, down from nearly 30,000 in June and the fewest since August 2013. Overall, the report shows a still decent pace of employment creation, but its slightly cautious note may help soothe some fears among bond traders heading into the FOMC statement mid-afternoon.

Chart – Goods producing and service

About the Author
Andrew Wilkinson

Andrew is a seasoned trader and commentator of global financial markets. He worked for several London-based banks trading cash and derivatives before moving to the U.S. to attend graduate school. Andrew re-joins Interactive Brokers following a two-year stretch at a major Wall Street broker-dealer as their Chief Economic Strategist. His coverage of stocks, options, futures, forex and bonds regularly surfaces in global media, and over the last several years Andrew has made many TV appearances on Bloomberg, BBC, CNBC and BNN and Yahoo Finance.

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