Economic Snapshot: Six months of consecutive job growth

The ADP National Employment Report showed private sector employment increased by 213,000 jobs in September. This marks the sixth consecutive month of employment gains above 200,000 and is comparable to the number of jobs added in September 2013.

Small businesses led the way this month with 88,000 jobs added, followed closely by large businesses with 77,000 jobs. The bulk of large businesses that added jobs had 1,000+ employees. Medium businesses added 48,000 jobs in September.

Service-providing businesses added about three times as many jobs in September as goods-producing – 155,000 compared to 58,000 jobs.

Pending home sales

Pending home sales slowed slightly in August, falling to 104.7 from 105.8 in July. This reading is 2.2 percent below the previous year, when the index was 107.1.

While the report is showing a modest decline the index is still above 100, which is considered an average level of contract activity, for the fourth consecutive month. The index is also at its second-highest level since August 2013.

Pending home sales in the Northeast slipped three percentage points to 86.5 but is still 1.6 percent above August 2013. The index in the West increased for the fourth consecutive month to 102.1 but remains 2.6 percent below the previous year. In the South, the index decreased 1.4 percent to 117, unchanged from last year. The Midwest fell 2.1 percent to 102.4 and is 7.6 percent below August 2013.

GDP

The Bureau of Economic Analysis released its third estimate of real gross domestic product in the second quarter of 2014 – covering April, May and June – which showed the GDP increased at an annual rate of 4.6 percent.

This is up from last month’s estimate of 4.2 percent. The BEA notes the revision was mostly due to a larger than previously estimated increase in nonresidential fixed investment and exports.

Advance estimates for Q3 GDP growth will be released October 30.