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