- Mark Zandi, chief economist at Moody's Analytics
US private sector created more jobs than expected in February, another sign that the US job market remains resilient despite economic weakness overseas and volatility in financial markets. According to payroll processor ADP, US private companies hired 214,000 workers last month, whereas economists had expected a gain of 190,000 jobs. Private payroll gains in January were revised down to 193,000 from an originally reported 205,000 rise. The ADP data come ahead of the US Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment. Economists are forecasting total non-farm employment to have grown 190,000 in February, while the unemployment rate is predicted to remain unchanged at 4.9%.
In addition to that, the ISM will deliver the potential market-moving indicator for the US when it publishes its non-manufacturing index for February on Thursday. Earlier in the week, the ISM reported that US manufacturing activity continued to shrink in February for the fifth consecutive month. The ISM index of purchasing managers rose to 49.5 last month, compared with 48.2 in January. Even though, the figure represented the highest reading since September 2015, the gauge remained below the key 50-mark threshold, which indicates a contraction in manufacturing that accounts for 12% of the US economy.
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