Today ADP private payroll tracker showed private employers created 133,000 jobs in May, lower than the expected 148,000 while new claims for unemployment benefits rose by 10,000 which is the fourth weekly increase.
The second quarter 2012 average monthly increase for private sector payroll is 123,000 compared with 200,000 in the first quarter of 2012.
The U.S. Economy Expanded Less Than Previously Estimated
The Commerce Department revised its forecast of U.S. economic growth for the first quarter to a 1.9% annualized pace, lower than the 2.2% initially estimated rate. Corporate profits rose at the slowest pace in more than three years.
Manufacturing growth in the Chicago region showed a significant decline, reaching the lowest level since September 2009. The index declined in May 52.7 from 56.2 in April. Economists polled by Bloomberg were expecting a slight increase to 56.8 in May.
Euro Zone Economic Data
Inflation in the 17 member euro zone eased to 2.4% in May from 2.6% in April. The May figure is higher than the ECB’s target to keep inflation below 2%. However, the lower number may amplify requests for an interest rate cut for next week.
Germany’s unemployment rate fell below 7% as the country’s economy continues to outperform its euro zone members.