The S&P 500 (SPX) is trading lower on Tuesday after payroll solutions firm ADP released its new private sector jobs report.
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ADP said that U.S. private payrolls fell by an average of 11,250 per week for the four weeks ended October 25. The data contrasted sharply with a separate private payrolls report released by ADP last week, which showed an addition of 42,000 private payrolls in October and is based on a different methodology.
Small-Business Optimism Falls amid Government Shutdown
The report comes amid falling small-business sentiment. The National Federation of Independent Business (NFIB) Small-Business Optimism Index dropped by 0.6 points month-over-month to 98.2, with owners reporting falling sales and profits.
In addition, the labor quality was a major issue, with 32% of owners experiencing difficulty hiring. “Many firms are still navigating a labor shortage and want to hire but are having difficulty doing so,” said NFIB Chief Economist Bill Dunkelberg.
The government shutdown likely contributed to the falling sentiment, with federal workers going without pay and subsequently spending less.
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