ADP reported a gain of 118K jobs in the US private sector during November 2012. This was within expectations of a gain of 129K. The figure for the previous month was marginally revised from +158K to +157K.
It’s important to note that ADP now uses a different formula for its calculations, a formula which is expected to be more accurate and closer to the official Non-Farm Payrolls.
This could be an indicator that Non-Farm Payrolls could be weaker when the official BLS report is released on Friday. It’s important to note that even is ADP is very accurate, the NFP also includes government jobs. In addition, recent months saw significant revisions.
Later, another key figure will be released: the ISM Non-Manufacturing PMI. See how to trade this event with USD/JPY.
Earlier this week, ISM’s manufacturing PMI dropped below the 50 point mark separating growth from contraction. The employment component fell even deeper. Nevertheless, the more important release is for the services sector, as most of the US economy is there.
