That the ADP would miss today's expectations of 150K is no surprise: after all as we have been explaining for a while, the only way the Fed will have a green light to proceed with NEW QE if it so chooses at the June 19-20 meeting, is if the economic data suddenly turn horrendous. Which means tomorrow's NFP data is make or break: in fact, as far as markets are concerned, the worse the better - should a -1,000,000 NFP print come in, stocks will soar. Which is why the ADP print, which indeed was a miss, of 133K raised eyebrows that it wasn't bigger. Still, 3rd consecutive miss of expectations in a row, and 4th out of the last 5, it gives the BLS enough rope with which to hang itself, and potentially the president, who may have no choice but to sacrifice job creation "momentum" heading into the presidential race, in order to keep stocks higher.
Note the -2,000 change in manufcaturing jobs. We for one, can't wait for that "doubling of exports in 5 years" Obama promised 2 years ago.
Employment in the U.S. nonfarm private business sector increased by 133,000 from April to May on a seasonally adjusted basis. The estimated gain from March to April was revised down modestly, from the initial estimate of 119,000 to a revised estimate of 113,000.
Employment in the private, service-providing sector increased 132,000 in May, after rising a revised 119,000 in April. Employment in the private, goods-producing sector increased 1,000 in May. Manufacturing employment dropped 2,000 jobs, the second consecutive monthly decline.
Employment on large payrolls—those with 500 or more workers—increased 9,000 and employment on medium payrolls—those with 50 to 499 workers—rose 57,000 in May. Employment on small payrolls—those with up to 49 workers—rose 67,000 that same period. Of the 57,000 jobs created by medium-sized payrolls, 2,000 jobs were created by the goods-producing sector and 55,000 jobs were created by the service-providing sector.
Construction employment fell by 1,000 in May, its second consecutive decline following six monthly advances that likely were driven in part by unusually warm weather during the winter months.
Employment in the financial services sector increased 8,000 in May, extending this sector’s consecutive advances to ten months.
And visually, comparing to expectations: