ADP Private Payrolls rose, Mortgage rates unchanged, Service sector best levels in 12 years
October 04, 2017
In the first of two key employment reports this week, ADP Private Payrolls rose by 135,000 versus the 160,000 expected, impacted by recent hurricanes Irma and Harvey. August was revised lower to 228,000 from 235,000. The numbers had little impact on trading as the ADP data is often seen as second tiered and off target. Breaking the numbers down; small businesses with less than 50 employees lost 7,000 jobs, 50-499 employee sized firms gained 63,000 while 500 or more sized companies gained 79,000 new workers.
The Mortgage Bankers Association reported on Wednesday that mortgage rates were essentially unchanged in the latest week and remain at historic lows. The 30-year fixed conforming rate ($424,100 or less) increased to 4.12% from 4.11%, 30-year jumbo (greater than $424,100) rose to 4.09% from 4.06%, while the FHA 30-year rate was at 3.99%. Those rates do carry at least a 0.30 point on top of the rate.
The service sector of the U.S. economy hit its best level in 12 years in September. The ISM Service Index rose to 59.8 last month, well above the 55.3 expected with 14 of the 17 non-manufacturing industries surveyed reporting growth in September. Within the report it showed that the employment component rose for the 43rd consecutive month, while new orders category surged. A reading above 50 for the index indicates expansion in the service sector, and a reading below 50 signals contraction.
