Growth in private-sector jobs in US slows in June

U.S. companies added just 102,000 jobs in June, a possible turning point that could signal a coming increase in the unemployment rate.

Payroll processor ADP said Wednesday that the meager increase in private-sector jobs — after just 41,000 were added in May — indicates a slowdown in the economy. The job growth of the past two months has not been substantial enough to keep pace with population growth, potentially indicating that the government’s unemployment rate of 3.6% could rise, said Mark Zandi, chief economist at Moody’s Analytics.

The U.S. Department of Labor’s monthly report on non-farm payrolls and the unemployment rate is due Friday.

The economy just achieved the longest expansion in U.S. history, having grown for more than a decade. But a slowdown in manufacturing output and a decline in construction spending have raised concern about whether the economy is losing momentum.

Trade deficit increases; both exports, imports rise

The U.S. trade deficit rose to a five-month high in May as the politically sensitive imbalances with China and Mexico widened.

The Commerce Department said Wednesday that the gap between the goods and services the U.S. sells and what it buys from foreign countries rose 8.4% to $55.5 billion in May, the highest since December. Exports increased 2% to $210.6 billion on rising shipments of soybeans, aircraft and cars. But imports climbed more — 3.3% to $266.2 billion — on an increase in crude oil and cellphones.

The deficit in the trade of goods with Mexico rose 18.1% to a record $9.6 billion. The goods gap with China widened 12.2% to $30.2 billion.

President Donald Trump has sought to reduce America’s persistent trade deficit, which he sees as a sign of economic weakness and the result of bad trade agreements crafted by naive U.S. negotiators. He has slapped tariffs on foreign steel, aluminum, dishwashers, solar panels and thousands of Chinese goods. He also has renegotiated a trade pact with Canada and Mexico that awaits approval by Congress.

Service sector’s rate of growth slips in June

U.S. services companies grew at a slower pace in June as the rate of hiring, orders and production decelerated.

The Institute for Supply Management, an association of purchasing managers, said its non-manufacturing index fell to 55.1 from 56.9 in May. Anything above 50 signals growth, though, and the services sector is enjoying a 113-month winning streak.

Sixteen services industries reported growth last month, led by real estate.

Services dominate the American economy, accounting for 84% of private-sector jobs.

Japanese auto-software firm moving HQ to Dublin

Japanese automotive software-development company Micware is moving its North American headquarters to Dublin, creating 15 jobs.

Hiring for engineering, technical and administrative positions will begin immediately.

The headquarters is moving from Torrance, California, to 6543 Commerce Parkway. The new headquarters and technical center will allow the company to focus on the development and design of software for automotive infotainment systems.