Employment in the U.S. private sector increased by more than expected in the month of September, according to a report released by payroll processor ADP on Wednesday, with employment rising by more than 200,000 jobs for the sixth straight month.
ADP said private sector employment jumped by 213,000 jobs in September following a downwardly revised increase of 202,000 jobs in August.
Economists had been expecting an increase of about 205,000 jobs compared to the addition of 204,000 jobs originally reported for the previous month.
The stronger than expected job growth was partly due to a notable increase in goods-producing employment, which rose by 58,000 jobs in September following an increase of 42,000 jobs in August.
The construction industry added 20,000 jobs, while employment in the manufacturing industry climbed by 35,000 jobs, the biggest increase in that sector since May of 2010.
Meanwhile, ADP said service-providing employment rose by 155,000 jobs in September, reflecting a modest slowdown compared to the addition of 160,000 jobs in August.
The report also said employment at small businesses increased by 88,000 jobs in September, while large businesses added 77,000 jobs. Employment at medium-sized businesses rose by 48,000 jobs.
Peter Boockvar, managing director at the Lindsey Group, noted that private sector job growth averaged 225,000 over the past six months compared to the twelve-month average of 208,000 and the 2013 average of 187,000.
"This upward trend over the last few years is certainly encouraging, but it's a trend that hasn't shown much acceleration over the past few months and generally speaking is at a good but not great level of hiring," Boockvar said.
He added, "It's also good enough to see a continued drop in the unemployment rate assuming there is no major change in the participation rate, which means it pushes the Fed ever closer to having to raise interest rates."
Friday morning, the Labor Department is scheduled to release its more closely watched monthly employment report, which includes both private and public sector jobs.
Economists expect the report to show an increase of about 215,000 jobs, while the unemployment rate is expected to come in unchanged at 6.1 percent.
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