The ADP employment report again sees optimism in nonfarm payrolls.
Employment in the U.S. nonfarm private business sector increased by 163,000 from June to July, on a seasonally adjusted basis. The estimated gain from May to June was revised down slightly, from the initial estimate of 176,000 to 172,000.
163k is well above analysts expectations of 120k. ADP has been quite inaccurate lately in regard to their figures indicating what the monthly payrolls number will be as reported by the BLS in the employment situation report. ADP has missed by +88K, -11K, +51K, and +92K over last 4 months. In June, ADP saw 172k jobs added, while the BLS reported an increase of a paltry 80k.
So this month’s figure is slightly positive, but let’s not forget how widely it may differ from the BLS report.