US private payrolls slump in May – ADP

Hiring in the US private sector slumped in May, adding only 37K new jobs compared to 111K consensus and dipped well below April’s downwardly revised 60K (from 62K).

May data present the weakest numbers over two years, although analysts do not see it as an indication of sharp slowdown in the labor sector, which remains in a gradual slowdown on growing uncertainty over signals of economic growth slowdown and anticipated negative impact from tariffs.

The biggest contribution to May’s numbers came from services sector, which showed signals of expansion and partially offsets negative picture that is developing after the recent US economic data.

The ADP report is the second from three reports from the labor sector that are released every first week of the month.

The first report (JOLTS) showed upbeat results last month, with markets awaiting release of US Nonfarm payrolls report (due on Friday) to get full information about the situation in the US labor sector, one of the pillars of the economy, in May.