- Michelle Girard, chief U.S. economist at RBS Securities
The world's biggest economy created more private sector jobs in May compared with the preceding month and overshot analysts' expectations, according to the latest ADP report. American private employers added 201,000 jobs in May, compared with a downwardly revised 165,000 jobs a month earlier, which were the fewest since January 2014. The ADP figures came ahead of the US Labor Department's more comprehensive non-farm payrolls report on Friday, which measures both public and private-sector employment. Economists are looking for total US employment to have grown by 225,000 jobs in May, up from April's 223,000 increase. The unemployment rate is predicted to hold at a near seven-year low of 5.4%.
Meanwhile, the US trade gap narrowed in April, easing one of the biggest drags on economic growth during the beginning of the year. The trade deficit contracted by 19.2% to a seasonally adjusted $40.88 billion in April, according to the Commerce Department. That was the sharpest drop in more than six years. In April, imports plummeted 3.3% to $230.78 billion, whereas exports increased 1% from March to $189.91 billion.
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