Although there is only a passing correlation between monthly changes in the ADP measure of private payrolls and the official non-farm payrolls estimates, the plunge in the former in September is a concern, particularly since the government shutdown could delay the release of the official employment data. If the shutdown drags on, the weakness in the ADP will be all the Fed has to go on as it considers another rate cut at the FOMC meeting late this month.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.