Economic Snapshot: Private sector employment adds 156,000 jobs in April

While 156,000 jobs were added in April, this is down from 194,000 jobs in March and 191,000 jobs in April 2015.

ADP employment report

Private sector employment increased by 156,000 jobs from March to April. Payrolls for small businesses led the increase, adding 93,000 jobs in April, on pace with the March rate. Medium-sized businesses added 39,000 jobs in April, a large drop from March’s 66,000 jobs. Large companies added 24,000 jobs in April.

Service-producing employment rose by 166,000 jobs in April, down from 189,000 in March. Professional/business services contributed 27,000 jobs, a small decrease from 31,000 in the previous month. Trade/transportation/utilities grew by 25,000, down from 42,000 in March. Financial activities added 4,000 jobs.

Goods-producing employment lost 11,000 jobs in April, down from a downwardly revised 5,000 in March. The construction industry added 14,000 jobs, a decrease from 18,000 in the previous month. Manufacturing lost 13,000 jobs after being revised down to a loss of 3,000 in March.

ISM manufacturing index

The ISM Manufacturing Index decreased 1 percentage point to 50.8 in April. Economic activity in the manufacturing sector expanded in April for the second consecutive month and the overall economy grew for the 83rd consecutive month.

The New Orders Index registered 55.8 percent, a decrease of 2.5 percentage points. The Production Index decreased 1.1 percentage points to 54.2 in April.

The Employment Index increased 1.1 percentage points to 49.2 percent in April. Inventories of raw materials registered 45.5 percent, a decrease of 1.5 percentage points. The Prices Index rose 7.5 percentage points to 59 percent, indicating higher raw materials prices for the second consecutive month.

Fifteen of the 18 manufacturing industries reported an increase in new orders and in production in April, up from 13 and 12, respectively, in March.

Eleven of the 18 manufacturing industries registered growth in April and four reported contraction.

ISM non-manufacturing index

The ISM Non-Manufacturing Index rose 1.2 percentage points to 55.6 in April. This represents continued growth in the non-manufacturing sector at a slightly faster rate. Economic activity in the non-manufacturing sector grew in April for the 75th consecutive month.

The Non-Manufacturing Business Activity Index decreased 1 percentage point to 58.8 in April, reflecting growth for the 81st consecutive month, albeit at a slower rate. The New Orders Index rose 3.2 percentage points to 59.9 in April.

The Employment Index increased 2.7 percentage points to 53 percent, indicating growth for the second consecutive month. The Prices Index jumped 4.3 percentage points to 53.4 percent, indicating prices increased in April for the first time in three months.

Thirteen non-manufacturing sectors reported growth in April and four reported contraction.

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