Job creation in the United States slowed more than expected in August, according to ADP, a sign that the surprisingly resilient U.S. economy might be starting to ease under pressure from higher interest rates. The firm reported Wednesday that private employers added 177,000 jobs in August, well below the revised total of 371,000 added in July.
That's about the same number of jobs economist surveyed by The Wall Street Journal expect to see added in August. That would be the smallest increase in employment gains since January 2021, but in line with the pattern before the pandemic.
Why it matters: Adding fewer jobs would take pressure off the Federal Reserve to raise interest rates further.
Also, inflation has put a crimp in bev/al sales in all three sectors – beer, wine and spirits. If the Federal Reserve doesn't raise interest rates, it may ease that pressure and result in bev/al sales increases.
However: The low/no alcohol trend seems likely to stay, and government officials in the U.S. and abroad are warning about dreinking may hurt consumers, urging them to cut back, which may continue to trim sales.