US: ADP employment consistent with expectation of a 205k NFP increase - Nomura

Analysts at Nomura note that US ADP reported a 235k increase in private employment in February, slightly above expectations (Nomura: 205k, Consensus: 200k) and was largely consistent with Nomura’s expectation of a 205k increase in private employment in the BLS’ jobs report to be released on Friday.

Key Quotes

“The strength in employment gains was broadbased with goods producing industries contributing 37k and a solid 198k from service providers. On the goods side, construction (+21k) and manufacturing (+14k) were strong. For services, professional & business services, education & health services, leisure & hospitality and trade, transportation & utilities all increased by over 40k, a solid reading. Taken altogether, today’s ADP report is consistent with continued strength in the labor market, in line with our expectations.”