Economic wrap: watching US jobs - Westpac

Analysts at Westpac offered an economic wrap.

Key Quotes:

"US private sector employment (ADP) increased 153k in Dec (175k expected). The goods producing sectors saw declines, while service sectors gained. Jobless claims were 235k (vs 260k expected). ISM services PMI was flat at 57.2 (56.8 expected). New orders firmed 4.6pts to 61.6 and prices paid rose 0.7pts to 57.0 but employment eased 4.4pts to 53.8 while new export orders fell 4 points to 53.0.

Economic Event Risks Today

Locally we have Australia’s trade balance for Nov, but the main event will be the monthly US payrolls data. The consensus expectation is for a 175k gain in Dec.  Four of the last five December payroll outturns have been stronger than expected but last night’s ADP and ISM services employment data if anything hint that the risks may be the other way. There’s also Fedspeak from Evans, Lacker and Kaplan."