U.S. companies hired workers at a slower but still-solid pace in April, while the domestic services sector grew more than expected, supporting the notion the economic expansion remains on track despite a weak first quarter, private data released on Wednesday showed.
An improving labor market and faster activity in services industries last month also buttressed traders’ expectations the Federal Reserve would raise interest rates further in the coming months.
“In short, more evidence that the underlying trend in growth is not suddenly slowing, as suggested by the GDP data. If anything, the trend appears to be up, not down,” High Frequency Economics Chief U.S. Economist Jim O’Sullivan wrote in a research note.
Last week, the government said gross domestic product increased 0.7 percent in the first quarter, the weakest pace in three years.
Payrolls processor ADP said on Wednesday private employers added 177,000 jobs last month. It was the smallest