US private sector adds fewer jobs than expected in August - ADP

Employment increased by 138,000, versus expectations for a 288,000 rise. In July, the economy created nearly 270,000.

Small businesses with fewer than 50 employees added 25,000 jobs, while medium business with between 50 and 499 employees added 53,000. Large businesses with more than 500 employees created 54,000 jobs.

The goods-producing sector saw a 23,000 jump in jobs, while the services sector added 110,000. Within services, leisure and hospitality saw the biggest jump at 96,000.

ADP chief economist Nela Richardson said: "Our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy's conflicting signals.

"We could be at an inflection point, from super-charged job gains to something more normal."

Michael Pearce, senior US economist at Capital Economics, said: "The ADP’s revamped employment report showed private payrolls rising by a muted 132,000 last month, but with only limited details as to how they arrived at that number, we have little confidence that this new survey will prove to be any more accurate a guide to the official payrolls tally than the previous incarnation.

"We expect the official measure, due out on Friday, will show non-farm payrolls rose by 350,000 in August."