So, today Automatic Data Processing Inc. (everybody calls them ADP) announced that they’ll be changing (their press release used the word “enhance”) the methodology they use on their widely followed monthly survey of private-sector hiring. For those of you who don’t know, ADP is a big payroll-processing company that also counts payroll numbers. ADP payrolls are important statistics to compliment the Bureau of Labor Statistics’ nonfarm payroll (NFP) data and have the potential to move the markets. Typically, the ADP report comes out the Wednesday before NFP info.
The problem – if you want to call it that – has been the criticisms that ADP’s data send out confusing signals. Read more