Payroll processor ADP released a report on Wednesday showing private sector employment in the U.S. increased by much less than expected in the month of April.
ADP said private sector employment climbed by 62,000 jobs in April after surging by a downwardly revised 147,000 jobs in March.
Economists had expected private sector employment to jump by 125,000 jobs compared to the addition of 155,000 jobs originally reported for the previous month.
“Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,” said ADP chief economist Dr. Nela Richardson. “It can be difficult to make hiring decisions in such an environment.”
The Commerce Department also released a report showing the U.S. economy unexpectedly shrank in the first quarter of 2025.
The report said real gross domestic product fell by 0.3 percent in the first quarter after surging by 2.4 percent in the fourth quarter of 2024. Economists had expected GDP to rise by 0.4 percent.
The unexpected dip by GDP primarily reflected an increase in imports, which are a subtraction in the calculation of GDP.
A decrease in government spending also weighed on GDP, while increases in investment, consumer spending and exports helped limit the downside.
At 9:45 am ET, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of April. The Chicago business barometer is expected to dip to 45.5 in April after climbing to 47.6 in March, with a reading below 50 indicating contraction.
The Commerce Department is due to release its report on personal income and spending in the month of March at 10 am ET. The report includes the Federal Reserve’s preferred readings on consumer price inflation.
Personal income is expected to rise by 0.4 percent and personal spending is expected to climb by 0.6 percent, while consumer prices are expected to come in unchanged and core consumer prices, which exclude food and energy prices, are expected to inch up by 0.1 percent.
Also at 10 am ET, the National Association of Realtors is scheduled to release its report on pending home sales in the month of March. Pending home sales are expected to dip by 0.3 percent in March after surging by 2.0 percent in February.
The Energy Information Administration is due to release its report on oil inventories in the week ended April 25th at 10:30 am ET.
At 11 am ET, the Treasury Department is due to announce the details of next week’s auctions of three-year and ten-year notes and thirty-year bonds.
U.S. Private Sector Employment Up Less Than Expected In April
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