In January, employment dropped by 22 000 in the US, according to the ADP report, which was close to the consensus estimate of -30 000. The previous figure was upwardly revised from -84 000 to -61 000. Looking at the details, employment fell by 60 000 in the goods-producing sector, of which 25 000 in manufacturing. Employment in the service-providing sector rose by 38 000 in January. The drop in employment was the smallest in two years and the ADP added that the jobs climate has improved quite dramatically and a positive ADP jobs number is expected for February based on the recent trends.

The US non-manufacturing ISM rose from 50.1 to 50.5 in January, slightly below the consensus estimate of 51.0. The breakdown shows a mixed picture as only new orders (54.7 from 52.0), inventory sentiment (64.5 from 61.0) and employment (44.6 from 43.6) improved, while business activity (52.2 from 53.2), backlog of orders (45.5 from 48.0), inventory change (46.5 from 51.5) and imports (47.0 from 52.5) deteriorated. Supplier deliveries and new export orders stayed unchanged in January. Inflationary pressures increased as prices paid increased from 59.6 to 61.2.


EMU: Christmas selling season disappoints in EMU

In December, euro zone retail sales came out flat, while an increase by 0.4% M/M was expected. The November figure was however significantly upwardly revised from -1.2% M/M to -0.5% M/M. Food, drink and tobacco rose by 0.3% M/M, while non-food products dropped by 0.2% M/M. This outcome is a bit disappointing as December is traditionally one of the busiest months of the year due to the Christmas selling season. In the fourth quarter consumer spending is expected to have contributed little to GDP.


Other: expansion in UK services sector slows significantly

In the UK, the expansion in the services sector slowed in January. UK services PMI dropped from 56.8 to 54.5, while the consensus was looking for only a marginal deterioration in sentiment. The downward surprise might be due to bad weather conditions as the snow might have caused disruptions. In the euro zone, the final figure of services PMI showed a slight upward revision compared to the first estimate. The headline figure was adjusted to 52.5 from a first estimate of 52.3.