ADP Employer Services said U.S. companies added more jobs than expected in July, according to a Bloomberg report.
The New Jersey-based company reported an increase of 163,000 jobs at U.S. companies, which followed ADP’s June report of 172,000 jobs gained.
Increased hiring means consumers are earning more, which might prompt them to spend more.
Bloomberg separately surveyed 38 economists, and the projected estimate for job growth ranged from 75,000 to 180,000.
Bloomberg reported that since 2010, ADP’s initial estimates on job growth either overestimated or underestimated the Labor Department’s initial look at private payrolls by 72,000 on average. Economists surveyed by Bloomberg were off by 58,000 jobs on average.
Goods-production industries increased workers by 15,000, according to the Bloomberg report. Employment in the construction industry rose by 5,000, and factory jobs by 6,000. Payrolls for service providers increased by 148,000.
Large companies of 499 employees or more added 23,000 jobs, medium-sized companies (50-499 employees) added 67,000 jobs and small businesses increased payroll by 73,000, according to ADP.
The report from ADP is based on data from businesses with more than 21 million workers on payrolls. ADP partnered with Macroeconomic Advisers LLC in St. Louis to produce the data.