Economic Snapshot: Private sector employment adds 147,000 jobs in October

Private sector employment increased by 147,000 jobs from September to October, which is down from 202,000 jobs added from August to September, according to the ADP Employment Report.

Large businesses contributed the most heavily to the jobs added in October, adding 64,000 jobs. Medium businesses added 48,000 jobs and small businesses added 34,000 jobs.

Service-producing employment increased by 165,000 in October. Professional/business services added 69,000 jobs, while trade/transportation/utilities and financial activities added 17,000 and 18,000, respectively.

Goods-producing employment decreased by 18,000 jobs in October. The construction sector lost 15,000 jobs while the manufacturing sector lost 1,000.


Real gross domestic product increased at an annual rate of 2.9 percent in the third quarter of 2016, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 1.4 percent.

The increase in real GDP in the third quarter reflected positive contributions from personal consumption expenditures (PCE), exports, private inventory investment, federal government spending, and nonresidential fixed investment. These were partly offset by negative contributions from residential fixed investment and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.

The price index for gross domestic purchases increased 1.6 percent in the third quarter, compared with an increase of 2.1 percent in the second quarter. The PCE price index increased 1.4 percent, compared with an increase of 2.0 percent in the second quarter. Excluding food and energy prices, the PCE price index increased 1.7 percent, compared with an increase of 1.8 percent last quarter.

ISM manufacturing

The ISM Manufacturing Index increased 0.4 percentage points to 51.9 in October. Economic activity in the manufacturing sector expanded in October and the overall economy grew for the 89th consecutive month.

The New Orders Index decreased 3 percentage points to 52.1 percent and the Production Index increased 1.8 percentage points to 54.6 percent.

The Employment Index increased 3.2 percentage points to 52.9 percent. Inventories of raw materials decreased 2 percentage points to 47.5 percent. The Prices Index increased 1.5 percentage points to 54.5 percent, indicating higher raw materials prices for the eighth consecutive month.

Ten of the 18 manufacturing industries reported growth in October and eight industries reported contraction.

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