ADP: Headline Job Growth, Details More Mixed

Bottom Line:   ADP reported stronger-than-expected job growth in October as leisure and hospitality hiring rebounded sharply. However, outside of that large segment, most sectors saw job losses. Job growth was still robust in trade, transportation and utilities, but the pace of gains was notably slower. Moreover, there were negative revisions to September's gains. And the trend rate of job gains continued to slow modestly. The last three months averaged 188k, notably lower than the six- and 12-month averages of 262k and 339k. Overall, job gains continue but are slowing. Finally, this report suggests the 196k consensus for Friday's national payroll data looks about right.