watch now2:5502:55Private company hiring bounced back with a 104,000 increase in July, ADP saysSquawk BoxHiring at rebounded at a stronger-than-expected pace in July, indicating the labor market is holding its ground, ADP reported Wednesday.Payrolls rose by a seasonally adjusted 104,000 for the month, reversing a loss of 23,000 in June and topping the Dow Jones forecast from economists for an increase of 64,000.
The June number was revised up from an initially reported loss of 33,000.Though the pace of hiring is well off where it stood last year, the June total was the best since March and consistent with a slowing but still fairly vibrant jobs picture."Our hiring and pay data are broadly indicative of a healthy economy," ADP's chief economist, Nela Richardson, said.
"Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient."The report s months of concerns that President Donald Trump's tariffs would hold back economic growth and stymie consumer spending.
However, sentiment surveys show confidence returning even with some apprehension consumer spending and the impact that the duties will have on U.S.
es and inflation.Leisure and hospitality, seen as a xy for consumer demand, led sectors with 46,000 new hires.
Other areas showing solid growth included financial activities (28,000), trade, transportation and utilities (18,000), and construction (15,000).
Medium and large es added 46,000 each, while companies with fewer than 50 employees contributed just 12,000.On the downside, education and health services showed a loss of 38,000.Wages rose at a 4.4% annual pace for the month, in line with recent trends.The ADP report serves as a precursor to the nonfarm payrolls count that the Bureau of Labor Statistics will release Friday, but the two often differ, sometimes dramatically.
The BLS report in June showed private payrolls growth of 74,000, and 147,000 including government jobs.Economists surveyed by Dow Jones expect the economy added 100,000 jobs in July, with the unemployment rate expected to nudge higher to 4.2%.Don’t miss these insights from CNBC Bank of America says these five stocks have more room to run ahead of earningsThese overbought stocks could take a dip after the market's record gainsGoldman Sachs is getting worried the economyWhat the prediction are saying the big Wall Street events ahead