Data from ADP on private payroll growth and the first look at second quarter GDP growth out Wednesday morning both topped forecasts, a sign of continued resilience in the US economy.
Private payroll growth in July tallied 104,000 according to the latest data from ADP, more than the 77,000 jobs that private employers were expected to add and a rebound from the 23,000 jobs that were cut in the sector last month.
“Our hiring and pay data are broadly indicative of a healthy economy,” said Nela Richardson, chief economist at ADP. “Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient.”
Fifteen minutes after ADP’s data was released, the BEA put out its first look at GDP growth in the second quarter, which showed the US economy grew at an annualized rate of 3% in the second quarter, faster than the 2.6% that had been expected by economists.
In the first three months of the year, the US economy contracted at a rate of 0.5%.
The BEA noted in its release the rebound in the second quarter was largely a result of decreased imports, which had weighed on growth in the first quarter as businesses increased orders ahead of expected tariffs.
In response to the data, longer-term Treasury yields ticked slightly higher while futures remained little-changed ahead of the Federal Reserve’s policy announcement set for 2:00 p.m. ET.
In a post on Truth Social following the GDP data, President Trump again called on the Fed to cut rates. The central bank is widely expected to make no change to its interest rate policy later today.