Markit Reports Slowest Service Jobs Creation In Over A Year

Tyler Durden's picture

While modestly better than expected, Markit's Services PMI fell in April from March's snap-back "we are saved" post-weather bounce.. and that's the good news! While abover "50" and this in expansion mode, job creation slipped to 13-month lows! As Markit summarizes, "the surveys are also signalling an easing in the rate of job creation since the start of the year, pointing to private sector payroll growth in the region of 100k, meaning a substantial slowing compared to the recent average 225k increases signalled by official data over the past three months."

 

The headline data fell but remains in expansion...

 

But jobs are collapsing...

 

Via Markit,

“The survey data point to robust growth at the start of the second quarter, adding to hopes that the official data will show the economy rebounding strongly from the weather-related stalling seen in the first quarter... The final services PMI came in higher than the flash reading and signals only a very minor slowing in the rate of expansion compared with March. Combined with the three-year high recorded by the manufacturing survey, the two PMIs suggest that the US economy enjoyed a strong start to the second quarter. GDP should rebound strongly from the 0.1% annualised rate seen in the first quarter. The final April PMI numbers are broadly consistent with a 2.5% annualised GDP growth rate.

The good news needs to be qualified, however.

 

First, the surveys suggest that the trend rate of growth has eased since late last year. With the exceptions of last October’s government shutdown and the weather-disruptions at the start of the year, April’s growth rate was the slowest since May last year.

“Second, the surveys are also signalling an easing in the rate of job creation since the start of the year, pointing to private sector payroll growth in the region of 100k, meaning a substantial slowing compared to the recent average 225k increases signalled by official data over the past three months.”

Remember: in a baffle with BS world, the above simply means that the official Services ISM print due in minutes, will be a modest miss to consensus expectations, even as service jobs surge. Because one has to keep the vacuum tubes on edge.