While growth continues for the non-manufacturing sector, the ADP employment report this month continues a downward trend from March's numbers. Hopefully this is still residual effect from the harsh winter, but we will have to keep an eye on these numbers in the coming months.
ADP employment report
Private sector employment increased by 169,000 jobs from March to April, a 20,000 decrease from the 189,000 jobs added in March. This is the lowest level of employment additions since January 2014.
A lack of job creation in large businesses contributed heavily to the decrease. Large businesses added 5,000 jobs in April, down from 12,000 in March. Last month, job creation in large businesses dropped from 53,000 in February. Small businesses added 94,000 jobs in April, down from 105,000 in March. Medium businesses added 70,000 jobs, up from 64,000 in March.
Service-producing businesses added 170,000 jobs in April, down from 172,000 in March. Goods-producing businesses lost 1,000 jobs after adding 3,000 jobs in March.
The manufacturing industry lost 10,000 jobs in April after losing 3,000 jobs in March. The construction industry added 23,000 jobs, up from 21,000 last month.Financial activities added 7,000 jobs, down from 12,000 the previous month. Employment in trade/transportation/utilities increased by 44,000 jobs, up from 41,000 in March. Professional/business services added 34,000 jobs, up from 28,000 last month.
The ISM non-manufacturing index registered 57.8 percent in April, 1.3 percentage points above the March reading of 56.5. Economic activity in the non-manufacturing sector grew for the 63rd consecutive month.
The Business Activity Index increased 4.1 percentage points to 61.6, reflecting growth for the 69th consecutive month at a faster rate. The New Orders Index registered 59.2 percent, 1.4 percentage points higher than the March reading on 57.8.
The Employment Index increased 0.1 percentage points to 56.7, indicating growth for the 14th consecutive month. The Prices Index decreased 2.3 percentage points from the March reading of 52.4 to 50.1 percent, which indicates prices increased in April for the second consecutive month but at a slower rate.
Fourteen non-manufacturing industries reported growth in April, with Arts, Entertainment and Recreation leading the way. The four industries reporting contraction are Mining; Other Services; Professional, Scientific and Technical Services; and Information.