Economic Snapshot: Private sector employment adds 154,000 jobs
Private sector employment increased by 154,000 jobs from August to September, according to the ADP Employment Report. This is down from 175,000 jobs added in the previous month. This is the fewest number of job additions since April 2016 and the second-fewest in the previous 12-month period.
Large businesses contributed most heavily to the job additions this month, adding 64,000 jobs. This is down slightly from 67,000 jobs last month, Medium-sized businesses added 56,000 jobs, up from last month’s 40,000. Small businesses increased by 34,000 jobs in September, down from 68,000 in August.
Service-producing jobs rose by 151,000 jobs in September. Professional/business services contributed 45,000 jobs, down from 53,000 in the previous month. Trade/transportation/utilities increased by 15,000 jobs, down from 26,000 in August. Financial activities added 11,000 jobs, down from last month’s 15,000 jobs.
Good-producing employment was up by 3,000 jobs in September following August losses of 9,000. The construction industry added 11,000 jobs after losing 2,000 in August. Manufacturing jobs were down 6,000 in September, following the 4,000 jobs lost in the previous month.
ISM non-manufacturing
The ISM manufacturing Index rose 5.7 percentage points to 57.1 in September. This represents continued growth in the non-manufacturing sector at a faster rate. Economic activity in the non-manufacturing sector grew in September for the 80th consecutive month.
The Non-Manufacturing Business Activity Index jumped 8.5 percentage points to 60.3 percent in September, reflecting growth for the 86th consecutive month at a noticeably faster rate. The New Orders Index also climbed in September, up 8.6 percentage points at 60 percent.
The employment Index rose 6.5 percentage points to 57.2 percent in September. The Prices Index increased 2.2 percentage points to 54 percent, indicating prices increased in September for the sixth consecutive month.
Fourteen non-manufacturing sectors reported growth in September and four reported contraction.
ISM manufacturing
The ISM Manufacturing Index increased 2.1 percentage points to 51.5 percent in September. Economic activity in the manufacturing sector expanded in September, following one month of contraction in August, and the overall economy grew for the 88th consecutive month.
The New Orders Index jumped 6 percentage points to 55.1 percent in September. The Production Index registered 52.8 percent, up 3.2 percentage points from last month.
The Employment Index registered 49.7 percent, an increase of 1.4 percentage points from August. Inventories of raw materials registered 49.5 percent, an increase of 0.5 percentage points from the previous month. The Prices Index registered 53 percent in September, the same reading as in August, indicating higher raw materials prices for the seventh consecutive month. Nine of the 18 industries reporting an increase in new orders in September (up from six in August), and 10 of the 18 industries reporting an increase in production in September (up from eight in August).
Seven manufacturing industries reported growth in September and 11 reported contraction.
