Hints Point to a Good Employment Report on Friday
As we await the July employment numbers, some data that we’ve received this week suggest Friday’s report will be a good one.
The Institute for Supply Management’s manufacturing survey on Monday showed a weaker headline number, but the most important elements of the report, new orders and production, still showed strength. At 52.7, down 0.8 from June, the headline index is still above the threshold of 50, noted Bob Hughes, senior research fellow at the American Institute for Economic Research.
But the largest element of the U.S. economy isn’t manufacturing, it’s services, and the ISM non-manufacturing survey this morning showed a big jump in July. The survey showed big gains in the key areas of new orders, employment, and activity, Hughes noted. At 60.3, the non-manufacturing headline index improved by a better-than-expected 4.3 points in July, Hughes said.
The payroll company ADP, meanwhile, this morning estimated 185,000 new private sector jobs in July, slightly below the recent trend, but still a solid number, Hughes said.
“They all point to a good report on Friday,” Hughes said.
