US private payroll data beats expectations for December

Causes stocks to slip

Figures on the US labour market beat expectations on Thursday (5 January) causing stocks to slide.

Private sector employment rose by 235,000 in December, ahead of predictions, according to the figures from payroll processor ADP. Economists had expected a gain of 150,000. Meanwhile, unemployment claims for the last week of December fell to 204,000 from 223,000 the previous week. Fed officials remain hawkish on inflation despite recessionary fears The new data caused the S&P 500 to open 1.2% lower and the Nasdaq was down 1%. "The US job market figures remain in focus as strong purchasing power could contribute to keeping inflation elevated, undermining the Federal Reserve's eff...