ADP private employment reviewed - Nomura

Analysts at Nomura offered a review of the ADP private employment.

Key Quotes:

"ADP reported a 234k increase in private employment during January, above expectations (Nomura: 200k, Consensus: 185k). Service-providing industries contributed a strong 212k, while the goods producing sector added an additional 22k."

"In particular, the service sector reading is consistent with our view that some of the weakness in December’s service-providing industries will revert in January, supporting our forecast of a 205k increase in nonfarm payroll employment from the BLS employment report on Friday."

"Looking further at the details from the ADP report, manufacturing employment (+12k) increased healthily while the only industry to shed jobs during the month was information (-3k). Trade, transportation & utilities, professional & business, education & health and leisure & hospitality services all added more than 40k each."

"Overall, today’s ADP report is consistent with our forecast of a 205k increase in nonfarm payroll employment on Friday, 200k of which we expect from the private sector."