6 Jun 2013
Flash: NFP outlook doesn´t look great - DBS Group
FXstreet.com (Barcelona) - DBS Group analysts note that Wednesday’s reports weren’t encouraging for Friday’s payrolls.
They comment that the ADP report (of private sector employment) showed gains of only 135k against expectations for 165k, where the previous month’s gains were revised down to 113k (from 119k). Further, they note that the service sector ISM was more ominous and although the headline rose to 53.7 (from 53.1), the labor sub component dropped two full points to 50.1 and now sits on the same thin ice as the manufacturing sector’s labor component. The write, “Taken literally, 50.1 for both labor components points to zero payroll gains on Friday. The weekly jobless claims, averaging 347k over the past month,still suggest 162k job gains. But the two ISMs and the ADP report plainly point to downside risks, perhaps large ones.”
They comment that the ADP report (of private sector employment) showed gains of only 135k against expectations for 165k, where the previous month’s gains were revised down to 113k (from 119k). Further, they note that the service sector ISM was more ominous and although the headline rose to 53.7 (from 53.1), the labor sub component dropped two full points to 50.1 and now sits on the same thin ice as the manufacturing sector’s labor component. The write, “Taken literally, 50.1 for both labor components points to zero payroll gains on Friday. The weekly jobless claims, averaging 347k over the past month,still suggest 162k job gains. But the two ISMs and the ADP report plainly point to downside risks, perhaps large ones.”