The ADP National Employment Report came in at a gain of 163,000, well above the 125,000 that was expected and compares favorably to the 114,000 jobs gained in July 2011.
The 163,000 jobs gained were down from the 172,000 jobs gained in the prior month. The June 2012 number was revised down by 4,000.
Construction employment rose for the second consecutive month, adding 5,000 jobs. The financial services sector added 9,000 jobs from June to July, marking the twelfth consecutive monthly gain.
The ADP number does not have that high of a correlation to the BLS number. For example, the June 2012 BLS number was 80,000 – a far cry from the 176,000 ADP reported.
Still this is number is strong for those that just trade off the headline. The question is, will this headline be interpreted as continued recovery and a good thing, or another nail in the QE coffin?
Let us know what you think!
Zacks Investment Research
