Blowout Number from ADP

Simply put the US labor market continues to signal acceleration heading into the New Year adding justification – were it needed – to Bernanke and company’s decision to wind down the level of bond purchases starting this month. There were some concerns we heard ahead of today’s blowout ADP number that cold weather may have thwarted hiring in December. Perhaps that’s a story for January as record low temperatures threaten to disrupt the economy. However, the 238,000 reading of job creation is the largest of 2013 and was bolstered by upwards revision to prior monthly data. ADP revised higher its November reading to 229,000 from an initially reported 215,000. Construction jobs added 48,000 to the bottom line while manufacturers added 19,000 positions.

The rise in the number of construction jobs eclipses the year ago reading of 37,000 and as the chart below shows is the largest single monthly jump since February 2006. Payrolls overall rose by the most since November 2011 when ADP data showed they reached 276,000. For all of 2013 the private payroll processor shows monthly job creation ran at 180,000 positions.

Chart – Construction ranks surge to strongest in seven years

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.