The Trial Balance is CFO’s weekly preview of stories, stats and events to help you prepare.
Part 1: Concentrated job growth is “concerning” says ADP’s chief economist
Nela Richardson, chief economist of ADP, noted in her organization’s June National Employment Report that the growth in hospitality and leisure, 63,000 of the 150,000 jobs added, supplemented the overall job growth figures in the private sector. “Had it not been for a rebound in hiring in leisure and hospitality, June would have been a downbeat month,” she said.
“The labor market is cooling and it is becoming more concentrated,” Richardson said on Bloomberg TV. She referred to the private sector job additions, including those in health care as a “concentrated deceleration of hiring.” She referred to it as “concerning.”
She added that job growth occurring only in specific sectors can be problematic for the Fed who is still trying to hit the goal of 2% inflation.
“If we were seeing a slowdown that was consistent but still hiring in key sectors like manufacturing, especially interest rate sensitive sectors, or sectors that really effect shelter costs in the CPI like construction, I am all for it. But what [we’re] seeing is pockets of weakness, and that weakness can be problematic for inflation, not a coolant for [it].”
Part 2: Hackett data highlights and the City of Quincy CFO’s morning routine
This week, reporter Adam Zaki will publish a story on the Hackett Group’s latest Working Capital report. Oversights on the currently embargoed data, what it means to CFOs and how it can be actionable are all areas of focus. (7/10)
The CFO of Quincy, Massachusetts Eric Mason will be featured in The 6 a.m. CFO series. Mason was the subject of a multi-part series last month that talked about the variety of unique traits and experiences he brings to his CFO role. (7/11)
Here’s a list of important market events slated for the week ahead.
Monday, July 8
- Consumer credit, May
Tuesday, July 9
- NFIB optimism index, June
Wednesday, July 10
- Wholesale inventories, May
Thursday, July 11
- Consumer price index, June
- CPI YoY
- Core CPI, June
- Core CPI YoY
Friday, July 12
- Producer price index, June
- Producer price index YoY
- Core PPI, June
- Core PPI YoY
- Consumer sentiment (prelim), July
Part 3: Metric of the Month
July’s edition of Metric of the Month, which focuses on how to measure productivity with revenue per employee, is set to publish this week. Perry Wiggins, the CFO of APQC and author of the series talks about how reducing headcount, outsourcing and talent prioritization are all ways to improve this metric. (7/10)
