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ADP private payrolls whiff

Aug 5, 2015, 17:45 IST

Flickr / Public Information Office

Private payrolls grew by 185,000 in July, missing forecasts, according to ADP.

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Economists polled by Bloomberg had estimated that private payrolls grew by 215,000 during the month.

The goods-producing sector added 8,000 jobs while employment in the service-producing sector increased by 178,000.

In the report, ADP CEO Carlos Rodriguez said, "July employment growth was slower than June, but is still in line with what we have seen since the first of the year. Notably, large businesses with more than 500 employees had their strongest job gains since last December and were almost double the June number."

In June, private payrolls grew by 237,000, the highest since December 2014.

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This report comes ahead of the crucial data on nonfarm payrolls from the Bureau of Labor Statistics on Friday.

But in a preview of the data to clients, UBS' Kevin Cummins warned against using this report as a preview for the official jobs report. He noted that over the past 12 months, the ADP print has missed the BLS' by an average of 46,000 per month.

Here's the latest chart of total employment from ADP:

ADP

More to come ...

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