Economic Snapshot: Private sector employment adds 182,000 jobs
Private sector employment increased by 182,000 jobs in October, according to the ADP Employment Report. The report represents marginally fewer jobs than the gain of 190,000 in September. This is the fourth consecutive month of job increases below 200,000.
Small business employment increased by 90,000 jobs in October, which is nearly double the revised September gains of 47,000. Medium businesses added 63,000 jobs, up 50 percent from the previous month. Large business employment rose by 29,000 jobs, a sharp decline from the 101,000 jobs added in September.
Service-producing employment contributed heavily to the October increase, rising by 158,000 jobs. This is a decrease from the 182,000 service-producing jobs added in September. Professional/business services contributed 13,000 jobs in October, less than half of the September number. Trade/transportation/utilities grew by 35,000, off slightly from the previous month. The 9,000 new jobs added in financial activities were the fewest for the industry in the past six months.
Goods-producing employment rose by 24,000 jobs in October, which is the best month of gains the sector has seen since January 2015. The construction industry added 35,000 jobs in October, essentially matching September’s gains. Meanwhile, manufacturing lost 2,000 jobs in October after a decline of 17,000 in September.
ISM manufacturing
The ISM Manufacturing Index decreased 0.1 percent to 50.1 percent in October, falling to its lowest level since May 2013. Economic activity expanded for the 34th consecutive month and the overall economy grew for the 77th consecutive month.
The New Orders Index registered 52.9 percent, an increase of 2.8 percentage points from September. The Production Index also registered 52.9 percent, 1.1 percentage points above the September reading.
The Employment Index registered 47.6 percent, 2.9 percentage points below the reading of 50.5 percent in September. The Prices Index registered 39 percent, an increase of 1.0 percentage point and indicating lower raw materials prices for the 12th consecutive month.
The New Orders Index registered 47.5 percent, a 1.0 percent increase from September. The Imports Index registered 47 percent, down 3.5 percentage points from the previous month.
Seven of the 18 manufacturing industries reported growth in October. Nine industries reported contraction.
ISM non-manufacturing
The ISM Non-Manufacturing Index increased 2.2 percentage points to 59.1 percent in October. This represents continued growth in the non-manufacturing sector at a faster rate. Economic activity in the non-manufacturing sector grew in October for the 69th consecutive month.
The Business Activity Index increased 2.8 percentage points to 63.0 percent, reflecting growth for the 75th consecutive month at a faster rate. The New Orders Index rose 5.3 percentage points to 62.0 percent.
The Employment Index increased 0.9 percentage points to 59.2, indicating growth for the 20th consecutive month. The Prices Index increased 0.7 percentage points to 49.1 percent, indicating prices decreased in October for the second consecutive month.
Fourteen of the 15 non-manufacturing industries reported expansion in October. The only industry reporting contraction in October was Mining.
