US: ADP employment report below expectations - Nomura

Analysts at Nomura note that according to the latest ADP report, private payroll added 153k in December, below expectations (Nomura: 170k, Consensus: 175k).

Key Quotes

“Much of the downside surprise was due to weak readings from the goods producing sector, which lost 16k. The payrolls in all three sub-sectors (natural resources and mining, construction, and manufacturing) registered declines. However, the downside surprise was not significant enough to materially affect our forecast for December nonfarm private payroll, which is unchanged at 170k. In addition, this reading from the ADP report suggests that real data may not have picked up despite a strong surge in business sentiment since the election.”