U.S. companies accelerated the pace of hiring in May, though job growth remained weak and was below economist expectations, a payroll-services firm reported Wednesday, indicating that hiring activity may be slowing. Private employers added 135,000 jobs last month, the ADP national employment report showed, missing forecasts for a gain of 165,000. The result was higher than April's revised total of 113,000 but was much lower than gains reported over the winter, which averaged more than 200,000 a month from November through February. In May, the goods-producing sector cut 3,000 jobs, compared to a gain of 138,000 in the services sector. The ADP report comes two days ahead of the government's more comprehensive labor-market report, which includes both public and private employment. That report is expected to slow job growth increased only slightly in May to 170,000 jobs from 165,000. Based on the government's figures, hiring has accelerated in the six months ending in April. Employers have added an average of 208,000 jobs per month, better than the 138,000 per month added in the previous six months. Economists forecast growth is slowing to around a 2 percent annual pace in the April-June quarter, down from a 2.4 percent pace in the first three months of the year. Consumers and businesses are likely slowing their spending because of pension tax increases and government spending cuts, while weaker global growth has reduced demand for U.S. exports.
