February ADP Below Estimates, Shocking January Revision
ADP has released its February private sector payrolls report, and on the surface it looks disappointing. This is also what we initially thought about the previous month, at least before it was revised upward. Still, there may be a flip side here. ADP said that 212,000 jobs were created in February, though Bloomberg was calling for a gain of 220,000. The previous reading of 213,000 was revised higher by a sharp 37,000 payrolls to 250,000.
While the current number is short of expectations, it does still represent growth. We seem to be in a market where slow growth is better for the markets because the Federal Reserve can theoretically not have to worry about economic readings that are too hot.
Small businesses were shown to add 94,000 jobs. Medium-sized businesses accounted for 63,000 jobs, and large businesses added 56,000 of the jobs. By segment these jobs broke down into Service jobs with reading of 181,000 and goods-producing jobs that came in at 31,000 for the month of February.
By industry, they were as follows:
- Construction, 31,000
- Manufacturing, 3,000
- Trade/transportation/utilities, 31,000
- Financial activities, 20,000
- Professional/business services, 34,000