The ADP Employer Services report showed that private sector employment increased by +176,000 in June, well ahead of the consensus of +100,000. This was up from +136,000 last month.
Most of this month’s gains came from the service sector (+160,000). Construction employment rose by +8,000 jobs, reversing two months of declines.
And jobless claims came in better-than-expected last week, falling 14,000 to 374,000. The less volatile 4-week moving average improved to 385,750.
Although today’s reports are not exactly robust, they reverse a trend of disappointing jobs data and point to “Muddle Through” growth for the U.S. economy.
We’ll see if we can go 3-for-3 tomorrow with the government’s Employment Situation Report. Before today, the consensus was pretty low at +100,000, but expectations have likely risen with today’s data.
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