07/05/18: Automatic Data Processing (”ADP”), which provides payroll services for thousands of employers around the world, reported today that private-sector employers in the United States created a fewer number of jobs during June than during the prior month.
Specifically, ADP reported that U.S. private-sector employers created only 177,000 new jobs during June, after creating 189,000 jobs during May. That’s the fourth consecutive month that U.S. private-sector employers created less than 200,000 new jobs, a number that most economists claim is needed to keep pace with the country’s population growth.
Looking forward, there’s a good chance that U.S. employers will create an even fewer number of new jobs during July, with The Conference Board reporting today that those employers posted 171,600 less job advertisements on Internet web sites during June than during May.
U.S. Non-Manufacturing Activity Accelerates during June
On a positive note, the Institute of Supply Management reported today that its June survey of purchasing managers at U.S. non-manufacturing companies indicates that economic activity in that sector of the U.S. economy accelerated during June after expanding during every month since February 2010.
On average, the economic developments mentioned above suggest that the U.S. economy will continue to expand at a healthy pace but that U.S. stock prices, in general, will likely continue to trade in a volatile sideways pattern over the next few months.