Wednesday was marked by resounding disappointment for the outlook for private sector jobs after payroll processor ADP reported lower job creation than anticipated. Forecasts had called for 166,000 jobs added during September, with the actual figure printing at 154,000 and August’s figure revised lower to 175,000. Although a figure over 150,000 new jobs is still positive for the economy, it marks the lowest reading since April and worst print in years, hurting speculation of December rate hikes. The next major upcoming event is Friday’s nonfarm payroll data due from the Bureau of Labor Statistics. Economists polled by Reuters forecast the creation of 175,000 new jobs in September. A stronger than expected payrolls data could see markets price in a 70.00% likelihood of a December hike. Also in focus will be any upward revision to August's tepid gains of 151,000 jobs.
Markets Brace for US Unemployment
Daily Analysis - 06/10/2016