The US economy got more incrementally bad news on Wednesday morning in the form of a slightly soft ADP employment report.
US firms added 135k jobs last month, trailing the 140k consensus was looking for. The range from three-dozen economists was 70k to 169k. August's figure was revised lower by 38k.
The 135k print is hardly a disaster, but it does represent the slowest pace of hiring in three months, which potentially bodes ill for nonfarm payrolls on Friday.
"The job market has shown signs of a slowdown", Ahu Yildirmaz, vice president and co-head of the ADP Research Institute said. "Businesses have turned more cautious in their hiring. Small businesses have become especially hesitant", Mark Zandi, chief economist of Moody’s Analytics, remarked, on the way to warning that "if businesses pull back any further, unemployment will begin to rise".
On its own, this wouldn't be a big deal, but on Wednesday, it adds to the palpable sense of angst created by the worst ISM manufacturing print in a decade. "The 5-month moving average [for ADP] is now just 117k, the lowest since 2010", Bloomberg's Cameron Crise notes.
As far as the burgeoning US factory slump is concerned, SocGen's Ki
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