Jobs and wage data/Purchase apps not lifting yet with drop in mortgage rates

ADP said in July that the private sector added a net 122k jobs, 28k less than anticipated and down from 155k in June (revised up by 5k). The service sector in particular added just 85k jobs with gains in trade/transportation/utilities of 61k, leisure/hospitality of 24k, education/health services of 22k, financial activities of 14k and ‘other’ of 19k, partly offset by declines of 18k in information and 37k in professional/business services.

The goods producing side was mixed too as construction added 39k but manufacturing shed 4k.

Medium and large companies drove almost all of the hiring. Small businesses with 20-49 employees lost 22k jobs, mostly offset by a gain of 15k for those with 1-19.

With respect to the wage side, for ‘job stayers’, wages rose 4.8% y/o/y vs 4.9% in June. For ‘job changers’, wages were up 7.2% vs 7.7% last month. While further decelerating, these are still big gains.