Employment in the U.S. private sector increased by much more than anticipated in the month of March, according to a report released by payroll processor ADP on Wednesday.

ADP said private sector employment soared by 263,000 jobs in March compared to economist estimates for an increase of about 187,000 jobs.

However, the report also said the jump in employment in February was downwardly revised to 245,000 jobs from the previously reported 298,000 jobs.

The spike in private sector employment in March reflected the biggest monthly increase since employment surged up by 284,000 jobs in December of 2014.

Employment in the goods-producing sector saw another significant increase, climbing by 82,000 jobs in March after soaring by an upwardly revised 100,000 jobs in February.

The report said employment in the construction and manufacturing industries rose by 49,000 jobs and 30,000 jobs, respectively.

ADP said employment in the service-providing sector also jumped by 181,000 jobs in March after a downwardly revised increase of 145,000 jobs in February.

Consumer dependent industries including healthcare, leisure and hospitality, and trade saw notable job growth during the month.

The report also said large businesses added 45,000 jobs, while employment at medium and small businesses jumped by 100,000 jobs and 118,000 jobs, respectively.

"Job growth is off to a strong start in 2017," said Mark Zandi, chief economist of Moody's Analytics. "The gains are broad based but most notable in the goods producing side of the economy including construction, manufacturing and mining."

The release of the report from ADP comes two days before the release of the Labor Department's more closely watched monthly jobs report, which includes both public and private sector jobs.

The Labor Department report is expected to show an increase of about 180,000 jobs in March, while the unemployment rate is expected to hold at 4.7 percent.

Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From May 2024 to Jun 2024 Click Here for more Sterling vs US Dollar Charts.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Jun 2023 to Jun 2024 Click Here for more Sterling vs US Dollar Charts.