US ADP reported a 177k gain in private employment in June, below expectations (Nomura: 205k, Consensus: 190k) with a modest 11k upward revision to the May reading (now at 189k), notes the analysis team at Nomura.
Key Quotes
“The report was somewhat softer than we expected with goods-producing industries decelerating (+30k vs. +49k last month). Overall, however, +177k is still a solid reading, above the level needed to absorb new labor market entrants and we continue to expect a 205k gain in June private nonfarm payroll employment.”
“Initial jobless claims: Initial claims rose slightly by 3k to 231k for the week ending 30 June. Their four-week moving average rose to 224.5k from 222.3k, but remains at a very low level. Continuing claims rose 32k to 1739k in the week ending 23 June. Continued low readings in initial and continuing claims appear consistent with the strong labor market. Claims data could show increased volatility in coming weeks as the summer retooling season approaches.”
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