A private survey shows U.S. businesses stepped up hiring in August, an encouraging sign ahead of Friday's government employment report.

Payroll provider ADP says businesses added 201,000 jobs last month, the most reported by the survey since March.

ADP also said July job growth was stronger than first thought: Employers created 173,000 jobs _ 10,000 more jobs than the group reported last month.

The report only covers hiring in the private sector and excludes government job growth. The Labor Department will offer a more complete picture of August hiring on Friday. The two surveys reported roughly the same private-sector job creation in July. But the two surveys have diverged sharply in previous months.