US private sector payrolls miss forecasts in June, ADP says

Private sector payrolls in the US increased by less-than-expected last month as hiring in goods-producing sectors flatlined.

Total private sector payrolls rose by 158,000 in June, undershooting forecasts for an increase of 185,000, according to consultancy ADP.

Meanwhile, the previous month's tally was revised down from an initial estimate of 253,000 to 230,000.

Medium-sized firms accounted for the bulk of hiring, ADP said, generating 91,000 jobs.

By sectors, services accounted for all of June's increase, with payrolls increasing 158,000, especially among professional and business service companies which accounted for 69,000 new hirings.

Commenting on Thursday's data, Ian Shepherdson, chief economist at Pantheon Macroeconomics wrote: "Don't be deceived [...] May's official number was hit be a seasonal adjustment problem, which likely won't reverse in full in June but definitely will not be repeated. Payrolls should therefore revert to the trend implied by a host of survey data, at least."