ADP's Richardson: This Is a Lopsided Economy

• Inflation is running 'hotter' (3.7% CPI) while paychecks are 'not keeping up' (3.2% YoY wage growth at ADP).
• Job gains remain 'pretty solid,' tracking upwards of 90,000 jobs per month, but workers' bargaining power is diminishing outside specific industries.
• Decelerating purchasing power is impacting retail sales, which are becoming 'a little bit more modest.'

ADP Chief Economist Nela Richardson characterizes the US economy as 'lopsided,' with solid job gains but wage growth failing to keep pace with inflation. This imbalance is eroding purchasing power, leading to more modest retail sales despite strong investment in areas like AI and infrastructure.