ADP Report Weighs Down Rate Hike Expectations

A weak ADP employment report has dampened expectations of a Federal Reserve rate hike. The report, released on September 2, showed an increase in private payrolls that decelerated from 46,000 in July to 38,000 in August, falling short of the market consensus forecast of 47,000.

The decline was led by manufacturing and professional services, which shed 17,000 and 16,000 jobs respectively. In contrast, education and health services saw a gain of 45,000 positions, while leisure and hospitality added 16,000 jobs.

The data pointed to underlying vulnerabilities in the labor market, with the ADP report reflecting a broader downward trajectory over the long term.