ADP data shows turnaround in private sector hiring ahead of FOMC meeting

(Sharecast News) - US private sector employers added an average of 14,250 jobs per week over the four weeks ended 11 October, according to preliminary data released by ADP on Tuesday, marking a sharp reversal from September's negative print. The new dataset, introduced amid a federal data blackout caused by the ongoing US government shutdown, will now be published every Tuesday with a two-week lag. It reflects a four-week moving average of weekly job growth and was intended to complement ADP's more widely followed National Employment Report, which typically precedes the government's monthly payroll figures.

"ADP's near real-time employment data, released weekly, will now provide an even clearer picture of the labor market at this critical time for the economy [...] providing a dynamic view of job creation and loss at an unprecedented level of weekly detail," said Nela Richardson, ADP's chief economist.

ADP's latest reading implies monthly job growth of around 55,000, compared with a 32,000 decline reported in September's NER. However, the preliminary figure will be revised when the next NER is released.

The update comes ahead of Wednesday's Federal Reserve decision, with policymakers closely watching labour market trends amid expectations for a second rate cut this year.





Reporting by Iain Gilbert at Sharecast.com