ADP Says U.S. Companies Decreased Payrolls by 371,000

Companies in the U.S. cut fewer jobs in July as the worst recession since the Great Depression eased, a private report based on payroll data showed today.

The estimated 371,000 drop, higher than economists forecast, followed a revised 463,000 drop the prior month, figures from ADP Employer Services showed today.

Stabilization in housing and manufacturing and help from the federal stimulus effort will usher economic growth this quarter, economists say. Consumer spending, which accounts for 70 percent of the economy, may be slow to gain speed as home prices fall, wages stagnate and unemployment climbs.

“We have seen the worst, but there is still more pain ahead,” said David Semmens, an economist at Standard Chartered Bank in New York. “Consumer spending will remain weak, especially as we head towards double-digit figures in unemployment.”

Stock-index futures dropped after the report and Treasury securities held earlier losses. The contract on the Standard & Poor’s 500 index was down 0.3 percent to 1,001.9 at 8:34 a.m. in New York. The yield on the benchmark 10-year note climbed to 3.74 percent from 3.69 percent late yesterday.

The Labor Department’s payrolls report, due in two days, may show employers cut another 328,000 jobs in July and unemployment jumped to 9.6 percent, according to the median forecast in a Bloomberg News survey.

August 05th 2009 — Economy — Leave A Comment — Subscribe

Next Entry: Condé Nast Portfolio kapanmış — Previous Entry: