ADP said the private sector added 163k jobs in July, 43k more than expected and compares with 172k in June. Of the 163k net jobs created, 148k were in services with the balance of 15k in the goods producing sector (of which 5k came from construction, 6k in mfr’g). Bottom line, while we should take note of this better than expected figure, its monthly correlation to the gov’t payroll data is very sketchy. ADP said 131k jobs private sector jobs were added in April while the gov’t said 105k were. ADP said 172k net jobs were created in June while the gov’t said it was just 84k. Over time and with a variety of revisions the two methodologies should converge but in the mean time the markets will focus on Friday’s number.
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