U.S. ADP NER Pulse for the four weeks ending August 29:
Weekly private employment change: +16,250 vs +12,000 expected. Prior +12,250Four-week moving average, seasonally adjusted
U.S. private employers added an average of 16,250 jobs per week during the four weeks ending August 29, according to ADP Research.
The result was stronger than the 12,000 estimate and increased from 12,250 previously. ADP said hiring increased for the second consecutive week, although the preliminary figures may change as additional data becomes available.
Quick analysis: The report points to some improvement in private-sector hiring after relatively subdued gains during the preceding weeks. That is modestly supportive for the USD and Treasury yields, but the NER Pulse is still a preliminary four-week moving average—not a replacement for the monthly ADP report or the government’s nonfarm payroll data. With the Federal Reserve decision tomorrow, its immediate market influence may be limited.
The ADP Weekly NER Pulse is a high-frequency estimate of changes in U.S. private-sector employment. “NER” stands for National Employment Report.
It measures:
The estimated week-to-week change in private payroll employment
Reported as a four-week moving averageSeasonally adjusted
Published with a two-week lag so ADP can collect more complete payroll information
Released most Tuesdays at 8:15 a.m. ET
It differs from the monthly ADP employment report. The weekly Pulse is designed to provide a timelier view of the direction of hiring, but it is preliminary and subject to revision as additional data arrives.
For example, a reading of +16,250 means private employers added an estimated average of 16,250 jobs per week over the latest four-week period. It does not mean 16,250 jobs were added during the entire month.
For traders, it offers an early indication of labor-market momentum. A stronger-than-expected reading can normally support the USD and Treasury yields, while a weaker reading can pressure them. However, it is generally less market-moving than monthly ADP employment or the government’s nonfarm payroll report.
This article was written by Greg Michalowski at investinglive.com.