US: Strong employment data – TDS

Analysts at TD Securities note that the US ADP employment series was up 202K in December, well above the 160K consensus, but caution against extrapolating the strength to the payrolls data on Friday.

Key Quotes

“The payrolls data were much weaker than the ADP data in November, and we continue to believe that risks are tilted in the opposite direction for December. (We had forecast a strong ADP reading.) Our payrolls forecast remains below consensus at 145K.”