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Real Time Insight

Early this morn, the private payroll processor ADP told us total U.S.A. Nonfarm Private Employment rose +175K in January. ADP revised its December’s jobs gain to +227K.  Forecasters looked for +190K job adds out of ADP in January.  So the ADP data more or less met expectations.

Digging in a little further, here is the segmentation in the ADP jobs data.
By Company Size
Small businesses: +75,000
Medium (50-499) businesses: +66,000
Large (500+ employees) businesses: +34,000
Conclusion - Good to see those small businesses forming!
By Sector
Goods-producing 16,000
Service-providing 160,000
Conclusion - It’s been a service economy.  It is still a service economy.
Industry Snapshot
Professional/business services 49,000
Trade/transportation/utilities 30,000
Construction 25,000
Financial activities 0
Manufacturing -12,000
Conclusion - The Financial Activities number at ZERO is telling. The Fed taper has hit this sector, unambiguously.
Mark Zandi, chief economist of Moody’s Analytics, posted this comment,
"Cold and stormy winter weather continued to weigh on the job numbers. Underlying job growth, abstracting from the weather, remains sturdy. Gains are broad based across industries and company sizes, the biggest exception being manufacturing, which shed jobs, but that is not expected to continue.”
My RTI Questions:  What Does This ADP Jobs Report Say About the U.S. Economy?  Will Stock Sellers Care?

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