U.S. private payrolls growth slows

U.S. private payrolls grew much slower than expected in October. The ADP National Employment Report said Wednesday payrolls rose by 365,000 jobs last month. That’s much less than the 650,000 economists had forecast.

It’s an early sign of a slowdown in economic activity as COVID-19 infections surge and fiscal stimulus diminishes. The moderation in the labor market recovery is in line with analysts’ expectations for a sharp deceleration in economic growth in the final three months of the year after rebounding in the third quarter.

The ADP report comes just ahead of the government’s closely watched jobs report on Friday. Economists expect private payrolls in that report as well as the overall payrolls tally to also show a slowdown in growth from September.