Reply #19: Horrible Economic Data Continues: ADP Plunges To 38K On Expectations OF 175K;

[DemReadingDU]

6/1/11 Horrible Economic Data Continues: ADP Plunges To 38K On Expectations OF 175K;

The latest economic data is out and it is horrendous: with expectations for the ADP employment number to come at 175K, following a downward revised 177K print previously, it tumbled to a puny 38K in May. While this number is extremely irrelevant in terms of correlating to the actual NFP number due out this Friday, expect to see a spate of downward NFP revisions on this latest confirmation that the US economy has stalled even with QE2 still in effect for another 29 days (and soon to be extended).

From the report: "Today’s ADP National Employment Report suggests that employment growth slowed sharply in May. Employment in the nonfarm private-business sector rose 38,000 from April to May on a seasonally adjusted basis. A deceleration in employment, while disappointing, is not entirely surprising. In the first quarter, GDP grew at only a 1.8% rate and only about 2¼% over the last four quarters. This is below most economists’ estimate of the economy’s potential growth rate and normally would be associated with very weak growth of employment." Precisely as expected by Zero Hedge.

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http://www.zerohedge.com/article/horrible-economic-data-continues-adp-plunges-38k-expectations-175k-downward-nfp-revisions-ne