U.S. ADP Jobs Report Positive 2012.03.07

March 07, 2012 20:33

Automatic Data Processing, Inc. (ADP) Wednesday reported United States (US) non-farm payrolls increased a seasonally adjusted 216,000 from the previous month to February 2012. Additionally, January 2012 experienced a 173,000 revised increase (initially 170,000) from December 2011. In February, the private service-sector provided 170,000 additional paid positions while the goods-producing sector supplied 46,000 additional paid positions. Additionally, manufacturing paid for an additional 21,000 positions. Large companies increased employment by 20,000, medium-sized companies raised employment by 88,000, and small companies provided 108,000 additional employment positions. Small companies, providing more than five times the positions of large companies, supplied 18,000 of the service sector’s employment increase and 90,000 of the goods-production’s employment increase.

Furthermore, the construction industry’s employment additions amounted 16,000 in February 2012 making it the fifth straight month of increases for the sector. As well, the financial services sector gained 14,000 in the month providing a seventh consecutive month of increases, and the largest increase in over two years.

In other news, Statistics Canada Wednesday released the country’s building permits dropped 12.3% to $6.0 billion in January 2012 after increasing 10.5% in December 2011. The January decline was the result of decreases in both the residential and non-residential sectors exhibiting decreased intentions for construction. In February, contractors took out fewer permits amounting to $4.2 billion after the three previous month’s permit purchases had experienced increases. Reductions in permits resulted from decreased plans for construction of multifamily dwellings.

The USDCAD failed to break through resistance at 1.0025 despite weak Canadian report and a strong U.S. ADP report. The U.S. Dollar weakened on reports that the Federal Reserve is considering a new form of quantitative easing. If the reports of further QE are true, we expect to see the USDCAD decline towards 0.9900 with further downside capped by weakness in the Canadian economy.

Eugene Ross, Analyst

Admiral Markets

At any use of the analytical material taken from a site of company Admiral Markets, and the secondary publication on any other resources, the rights to intellectual property for a dealing center «Admiral Markets», the reference to a company site is obligatory.

Admirals An all-in-one solution for spending, investing, and managing your money

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money.