-Moody's Analytics Inc
American private employers added the fewest workers in three years in April, considerably below economists' expectations, with signs of weak hiring activity across most sectors. Employers added 156,000 jobs in April, according to Automatic Data Processing Inc. Economists had predicted an increase of 193,000. Moreover, ADP lowered March's gains to 194,000 from the prior estimate of 200,000. The ADP figures come ahead of the Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment. Economists are looking for US private payroll employment to have increased by 193,000 jobs in April, compared with 195,000 the month before. Total non-farm employment is expected to be 202,000. The unemployment rate is expected to remain at 5.0% recorded a month earlier. Fed policy makers are counting on a strengthening job market to pull the economy out from a first-quarter slump. San Francisco Fed President John Williams said he is optimistic about the US economy and was giving little weight to the slowdown in first quarter gross domestic product. Atlanta Federal Reserve President Dennis Lockhart said two rate hikes this year are certainly possible.
In a separate economic report released Wednesday, the U.S. trade deficit shrank in March by almost 17% to $40.4 billion — the lowest level in more than a year.
© Dukascopy Bank SA