U.S. adds 275,000 jobs in April
Manufacturer expansion slows, construction spending falls
WASHINGTON — U.S. companies added the most jobs in nine months in April, a sign that hiring remains strong amid solid economic growth. But a gauge of U.S. factories fell to the weakest level since late 2016, construction spending dropped in March for the first time in four months, and spending on U.S. home construction fell to the lowest level in more than two years.
Payroll processor ADP said Wednesday that businesses gained 275,000 jobs last month, up from 151,000 in March. That’s a much higher number than economists forecast for Friday’s government jobs report, when analysts expect the Labor Department to say that 181,000 jobs were added, according to data provider FactSet.
The economy is so far expanding at a solid pace this year, despite fears last winter that the U.S.-China trade war, slower global growth and higher interest rates would tip the economy into recession.
Hiring in April was driven partly by a big gain in construction, which added 49,000 jobs despite the previous month’s spending slowdown, ADP said. A category that mostly includes hotels and restaurants gained 53,000.
“The job market is holding firm, as businesses work hard to fill open positions,” Mark Zandi, chief economist at Moody’s Analytics Inc., said in a statement. Moody’s produces the figures with ADP. “The economic soft patch at the start of the year has not materially impacted hiring. April’s job gains overstate the economy’s strength, but they make the case that expansion continues.”
Goods-producing jobs rose by 52,000, led by con
struction, while natural resources and mining saw a decline of 2,000.
The gain in service providers was led by professional and business services, education and health services, and leisure and hospitality.
Small-business payrolls increased while medium-size firms expanded by 145,000 jobs, the most since 2010. The pace of hiring at large companies slowed to 53,000.
ADP’s payroll data represent about 411,000 firms employing nearly 24 million workers in the U.S.
Meanwhile, U.S. manufacturers expanded at a slower pace in April, as measures of new orders, production and employment each slipped.
The Institute for Supply Management, an association of purchasing managers, says that its manufacturing index fell to 52.8 last month, down from 55.3 in March. Readings above 50 point toward an expansion in manufacturing. The sector has been reporting growth for 32 months.
The gauge for export orders fell below 50 for the first time in three years while imports missed the threshold for the first time in two years, the latest evidence President Donald
Trump’s trade wars are weighing on factories.
The measure for new orders also slipped to near the weakest since 2016, indicating softer demand. At the same time, the inventories gauge increased, suggesting stockpiles continue to expand, a trend that will likely eventually reverse and be a drag on growth.
An index of prices paid dropped to 50, a signal that inflation pressures are likely to remain muted.
Construction spending — including housing, nonresidential and government building projects — fell 0.9% in March to a seasonally adjusted annual rate of $1.28 trillion after rising 0.7% in both January and February, the Commerce Department said Wednesday.
Residential construction spending skidded 1.8% to a seasonally adjusted annual rate of $500.9 billion, lowest since December 2016.
Public construction dropped 1.3% to $320.7 billion in March.
Home building has wobbled but is expected to rebound as the Federal Reserve backs off on plans to raise interest rates this year. Information for this article was contributed by Christopher Rugaber and Paul Wiseman of The Associated Press and by Reade Pickert, Katia Dmitrieva and Jordan Yadoo of Bloomberg News.