August ADP National Employment Report Beat Expectations
The ADP National Employment Report for August 2017 was released on Wednesday, August 30, 2017. The report showed some improvement in private sector employment to 237,000 in August compared to the market’s expectation of 183,000. In July 2017, private sector employment stood at 178,000.
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Key highlights from the August report
The professional and business sectors added 39,000 jobs in August, the education and health sectors added 45,000 jobs, financial activities (XLF) added 11,000 jobs, the leisure and hospitality sector added 51,000 jobs, and the trade, transportation, and utilities (XLU) sectors added a combined 56,000 jobs.
Out of the 237,000 jobs in the private sector in August, 48,000 came from the small business category, 74,000 came from the medium business category, and about 115,000 came from the large business category.
Impact on the economy and the market
Private employment showed solid improvement. However, the August non-farm payroll data was not impressive, which we’ll discuss in the next part of this series. The stronger improvement in private employment is a positive sign both for the economy (IWM) (QQQ) and for the market (SPY).
The S&P 500 Index posted a marginal improvement in August 2017. The index movement was hampered in August mainly due to the rising geopolitical turmoil.
In the next part of this series, we’ll analyze US non-farm payrolls in August 2017.