ADP said 187k private sector jobs were added in Jan, above expectations of 140k but Dec was revised down by 50k from the outlier report originally given of 297k.
The service sector, the biggest % of the labor market, continued to drive most of the gains with a 166k job increase led by small and medium sized companies. The goods producing sector added 21k jobs led by a 19k person increase in manufacturing. Construction jobs fell by 1k while the financial services area added 3k jobs.
Bottom line, even with the Dec downward revision, the two month average is a solid 217k and certainly a positive for economic activity. There was nothing in the press release alluding to the bad weather being a factor in hiring. From a market perspective however, Friday’s payroll figure always is more relevant and expectations are for a total non farm gain of 143k.