-Bradley Holcomb, chair of ISM's manufacturing survey committee
The ADP report on the US labour market surprised to the downside, as fewer jobs were added in March than predicted. ADP non-farm employment change increased by 189,000 in March, considerably below expectations of a 225,000 rise. However, last month's data was revised upward to 214,000 from 212,000. The ADP employment change is considered as one of the leading indicators of labour market strength in the world's biggest economy. Even though the data appeared to be worse than expected, the jobless rate is set to remain unchanged at 5.5%, the lowest level since 2008. Last month the US unemployment rate fell to the level that some Fed officials consider consistent with full employment.
Another piece of soft data came from the US manufacturing sector, where activity expanded at a slower pace in March, the Institute for Supply Management reported. The ISM manufacturing index dropped to 51.5 last month, compared with 52.9 in February, while expectations were for the report to show the gauge to fall to 52.5. This was the fifth consecutive decline in the index, yet the reading remained above the 50-mark threshold, indicating the manufacturing sector continued to expand instead of shrinking. The employment sub-index dropped 1.4 points to 50, while the ISM's new-orders gauge slipped to 51.8 from 52.5.
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