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U.S. private sector job growth disappoints


Financial Markets

Romania's central bank unexpectedly cut its key interest rate on Wednesday for the seventh consecutive
session to a new low. The Board of the National Bank of Romania reduced the monetary policy rate to
1.75% from 2.00%. Economists had expected the bank to leave rates unchanged following a quarter-
point reduction in March. The central bank has lowered the rate steadily from 3.50% in six quarter-point
reductions since August 2014.



High Income Economies

In another sign of sluggishness in the labor market, payroll processor ADP said that employment in the
U.S. private sector increased by 169,000 jobs in April compared to a downwardly revised increase of
175,000 jobs in March. Economists had expected private sector employment to climb by about 200,000
jobs compared to the addition of 189,000 jobs originally reported for March. Employment in the service-
providing sector rose by 170,000 jobs in April, while employment in the goods-producing sector edged
down by 1,000 jobs.

Eurozone retail sales declined in March for the first time in six months as both food and non-food product
sales decreased from February. Retail sales volume dropped 0.8% (m/m) in March, reversing a 0.1% rise
in February. This was the first decline since September and was larger than the economists expected
drop of 0.7%. On a yearly basis, growth in retail sales eased to 1.6% (y/y) from 2.8% in February. It was
also slower than the 2.4% rise forecast by economists.



Developing Economies

Latin America and the Caribbean

Brazil's private sector activity fell at the fastest pace in more than six years during April, with weaker
performance in both manufacturing and services sectors, survey results from Markit Economics showed
Wednesday. The headline seasonally adjusted HSBC Brazil Composite Output Index tumbled to 44.2
from 47 in March, marking its lowest reading since March 2009. A reading above 50 suggests contraction
in the private sector. The Purchasing Managers' Index (PMI) for the services sector plunged to a 72-
month low of 44.6 in April from 47.9 in March, amid declining new business and an increasingly fragile
economy.

Sub-Saharan Africa

Kenya's private sector activity expanded at the fastest pace in four months in April, survey figures from
Markit Economics showed Wednesday. The Cfc Stanbic Kenya PMI rose to 56.2 in April from 53.8 in

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March, indicating a robust improvement in operating conditions. Any reading above 50 indicates
expansion in the sector. Higher output, new orders, and employment underpinned the increase in the
PMI.

May 6, 2015



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variety of macroeconomic topics, covered by the Group, may be found at:
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