US pvt sector hiring slows; trade deficit at 6-month low

Washington, Sept 4: US companies hired fewer workers than expected in August, but the trend in job growth remained consistent with a sturdy economic performance in the third quarter.

That view was reinforced by other data on Thursday showing only a slight increase in the number of Americans filing for unemployment benefits last week and a decline in the trade deficit to its lowest point in six months in July.

The ADP National Employment Report showed private payrolls increased by 204,000 workers last month after rising by 212,000 in July.

While that was below economists' expectations for a gain of 220,000 jobs, it marked the fifth

Washington, Sept 4: The pace of growth in the US services sector rose in August to its highest level since 2005, according to an industry report released on Thursday. The Institute for Supply Management said its services index rose to 59.6 last month from 58.7 in July. The August reading was the highest since August 2005 and topped economists' forecasts for 57.5, according to a Reuters survey. Reuters straight month of private sector employment gains above 200,000, and the increases in payrolls were broad-based.

In a separate report, the labour department said initial claims for state unemployment benefits increased 4,000 to a seasonally adjusted 302,000 for the week ended Aug. 30.

In a third report, the commerce department said the US trade gap fell 0.6% to $40.5 bil- lion in July, the lowest since January. June’s trade deficit was revised to $40.8 billion.

When adjusted for inflation, the deficit narrowed to $48.2 billion, the lowest since December 2013, from $48.9 billion in June. Third-quarter GDP growth estimates range as high as a 3.5% annual pace.

Trade weighed on growth in the April-June period.

Reuters