US: Weakness in employment data – TDS

Analysis team at TD Securities note that the US ADP employment data disappointed the consensus, coming in at 102k in June following an slightly upwardly revised 41k print in May.

Key Quotes

“Looking at the details, most of the weakness continues to be concentrated on the goods sector which shed 15k jobs in June (-43k in May).”

“Positively, the services sector rebounded to 117k in June from a weak 71k in May. This is in line with our NFP expectation that the goods sector will likely remain subdued in June, while the services sector should rebound modestly. We forecast a 150k print for June NFP (out on Friday).”