 "US jobs, services sector data pointing towards economy's resilience")
US private companies added workers at a fairly brisk clip in November and the services sector grew strongly, suggesting a slowing global economy is having a limited impact on domestic activity.
The strengthening labour market conditions, however, are yet too spur faster wage growth. Other data on Wednesday showed sharp downward revisions to compensation in the second and third quarters, which could give the Federal Reserve ammunition to maintain its very low interest rate policy for a while. "With all of the talk about a recession in Japan, possible recession in the Euro zone and in Russia, the US economy is looking much more attractive," said Jennifer Lee, a senior economist at BMO Capital Markets in New York.
The ADP National Employment Report showed private payrolls increased by 208,000 last month after rising by 233,000 in October. Private payrolls have increased by more than 200,000 in seven of the last eight months.
In another report, the Labor Department said compensation per hour increased at a 1.3 per cent rate in the third quarter rather than the 2.3 per cent pace reported last month. It declined at a 0.9 per cent rate in the second quarter instead of rising at a 2.3 per cent pace as previously reported. That should ease fears that wage growth is rising a little bit faster than the Fed's expectations and cause the US central bank to wait longer to raise interest rates.
"Wage growth remains disappointing, but will pick up in 2015 as a tighter labour market forces employers to raise pay in order to retain and attract workers," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh.
Wage growth is one of the key factors that will determine when the Fed will start raising its short-term interest rate, which it has kept near zero since December 2008.
Unit labour costs, the price of labour for any given unit of production, fell at a 1.0 per cent rate in the third quarter. They had previously been reported to have increased at a 0.3 per cent pace.
Unit labour costs for the second quarter were also revised down to show them declining at a steeper 3.7 per cent rate instead of the previously reported 0.5 per cent pace.
The strengthening labour market conditions, however, are yet too spur faster wage growth. Other data on Wednesday showed sharp downward revisions to compensation in the second and third quarters, which could give the Federal Reserve ammunition to maintain its very low interest rate policy for a while. "With all of the talk about a recession in Japan, possible recession in the Euro zone and in Russia, the US economy is looking much more attractive," said Jennifer Lee, a senior economist at BMO Capital Markets in New York.
The ADP National Employment Report showed private payrolls increased by 208,000 last month after rising by 233,000 in October. Private payrolls have increased by more than 200,000 in seven of the last eight months.
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Private sector job gains last month were broad-based, with a sharp acceleration in hiring by large firms. In a separate report, the Institute for Supply Management said its services index rose to 59.3 last month, just below the post-recession high of 59.6 hit in August, from 57.1 in October. A reading above 50 indicates expansion in services sector activity. There was an increase in new orders and a pick-up in deliveries. A gauge of export orders rose solidly, defying slowing economic growth in China and the Euro zone, as well as a recession in Japan. Services industry employment, however, slowed last month. US stocks were marginally higher, while prices for US government debt were little changed. The dollar rose against a basket of currencies.
In another report, the Labor Department said compensation per hour increased at a 1.3 per cent rate in the third quarter rather than the 2.3 per cent pace reported last month. It declined at a 0.9 per cent rate in the second quarter instead of rising at a 2.3 per cent pace as previously reported. That should ease fears that wage growth is rising a little bit faster than the Fed's expectations and cause the US central bank to wait longer to raise interest rates.
"Wage growth remains disappointing, but will pick up in 2015 as a tighter labour market forces employers to raise pay in order to retain and attract workers," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh.
Wage growth is one of the key factors that will determine when the Fed will start raising its short-term interest rate, which it has kept near zero since December 2008.
Unit labour costs, the price of labour for any given unit of production, fell at a 1.0 per cent rate in the third quarter. They had previously been reported to have increased at a 0.3 per cent pace.
Unit labour costs for the second quarter were also revised down to show them declining at a steeper 3.7 per cent rate instead of the previously reported 0.5 per cent pace.