Adp Report Misses Forecast

last updated on

Adp Report Misses Forecast

Adp Report Shows 150,000 Reading In June

According to the forecasts, the ADP report was expected to show a reading of 160,000 in June. However, the report showed that around 150,000 private-sector jobs were added to the economy during June. Similarly, the report also showed a 4.9% y/y increase in the annual pay for private sector jobs.

The data was released by the ADP (Automatic Data Processing), which is regarded as a key metric for understanding labor market conditions in the USA. The ADP reading for May was around 157,000, which means that June showed an increase of +3,000.

Adp Report For June Misses Forecast

As for the difference between this month's print and the forecast, the difference was around -3000. However, the bigger picture is that the ADP shows a consistent trend of growth and has barely missed the forecast made by the experts.

According to a chief economist, the job growth during June was solid, but the growth was not broad-based. They also added that a rebound was witnessed for hiring in the hospitality and leisure industry, which led to the positive print this month. Otherwise, the ADP reading for June would have been a negative one.

After the release of the June ADP data, the US Dollar index (DXY) edged lower by 0.1% and was last seen near 105.56. On the way down, the next support is at 105.50, 105.30, and then the area between 105.10 - 105.00.

With only a few days away from the NFP report due on Friday, it appears highly unlikely that the DXY will take any position before the release. However, once the NFP report is released, we will see a major trend in the DXY.

Historically speaking, it is normal for the ADP and the NFP report to show a different view of the US labor market. So even if the NFP report is totally different from the ADP, it shouldn't cause any surprise to the traders.

Trending Stories