ADP Stands for A Dubious Prediction

Are things turning around?

Inquiring minds are looking at ADP’s report about employment…and it is a brave new world:

This morning’s ADP report showed that employers increased payrolls by 297,000, which was the biggest gain in the history of the report. Although this is a very strong number it is important to point out that of the total 297k jobs created 270,000 were in the service sector. This means that over 90% of all jobs created were of the borrowing to consume variety, while less than 10% were of the saving and producing genre. The obvious conclusion from this data is that the trade deficit will surge in coming months.

Contradicting the ADP report was data released from the ISM non-manufacturing report. The employment component during December shrank to a 3 month low and registered 50.5, down from 52.7 in the prior month.

It is amazing just how few people are actually involved with producing something anymore in this country. Just think how much better off this country would be if we doubled that number of people.


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