MACRO: US labour market remains resilient

Ahead of Friday's highly anticipated NFP figures, today's ADP showed that private businesses in the US created 208K jobs in September, above upwardly revised 185K in August, slightly above analysts’ estimates of 200K.  Job growth is stable, however still remains below the recent three-month average. The services-providing sector added 237K jobs, led by trade/transportation/utilities (147K); professional/business (57K); education/health (38K); and leisure/hospitality (31K). In contrast, the goods sector shed 29K jobs. "There are signs that people are returning to the labor market. We're in an interim period where we're going to continue to see steady job gains. Employer demand remains robust and the supply of workers is improving-for now", Nela Richardson, chief economist, ADP, said. Meanwhile, annual pay increased 7.8% YoY for those who stayed at the same job while wages increased 15.7% for those who changed jobs.

Fresh ADP report suggests that demand for workers remains healthy despite growing economic uncertainty. Source: Bloomberg 

Today's ADP data coupled with surprisingly strong ISM non-manufacturing index for September (employment sub index jumped to 53.0 from 50.2 last month, a level not seen since March) suggest that the US economy remains robust and raised expectations that the Fed will continue its hawkish monetary policy stance.