A surprisingly weak private-sector ADP Employment report, released during an ongoing government shutdown, has intensified fears of a looming economic downturn.
Economist Warns Recession Odds Are Not At 0% Level
U.S. private payrolls unexpectedly shed 32,000 jobs in September, a stark reversal from consensus expectations of a 51,000 gain. The losses were driven entirely by small and medium-sized businesses, painting a troubling picture of the U.S. economy.
With the Bureau of Labor Statistics (BLS) suspending its data releases, the ADP report has taken on “outsize influence,” according to Bill Adams, Chief Economist for Comerica Bank. The bleak numbers prompted economist David Rosenberg, the founder and president of Rosenberg Research & Associates Inc., to post on X that “recession odds are not at the 0% level that equity and credit markets have been discounting.”