U.S. stock indices have turned negative this morning partly due to disappointing June private sector job results.
The U.S. economy added 158,000 total non-farm private sector jobs in June, according to private payroll processor ADP, missing the 185,000 consensus estimate from economists at briefing.com.
“Despite a slight moderation in the month of June, the labor market remains strong,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute in a statement.
“For the month of June, jobs were primarily created in the service-providing sector” Yildirmaz, added.
Mark Zandi, chief economist of Moody’s Analytics, said that the economy continues to move forward and predicted the tight labor market will continue to tighten.
“The job market continues to power forward. Abstracting from the monthly ups and downs, job growth remains a stalwart between 150,000 and 200,000. At this pace, which is double the rate of labor force growth, the tight labor market will continue getting tighter” Zandi said in a statement.
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