According to a new report, the American economy added a total of just 135,000 jobs during the month of May indicating that the federal budget cuts are impact the economic growth in the world's largest economy.

Private payroll processor ADP said on Wednesday that out of the 135,000 jobs added in the month, small business account for the highest at 58,000 while medium-sized businesses and large businesses each created about 39,000 jobs during the month. ADP also said that the professional and business services recorded the highest number of new jobs at 42,000, trade, transportation and utilities added 31,000, financial companies hired 7,000. On the other hand, the manufacturing sector lost 6,000 jobs.

Mark Zandi, chief economist of Moody's Analytics, "The softer job market this spring is largely due to significant fiscal drag from tax increases and government spending cuts."

ADP pointed out that the level of job creation in the month of May was above April's revised total of 113,000 and recorded a second month of weak growth. The world's largest economy has been showing signs of strong recovery with improvements in the jobs markets and a stable housing market in the US. However, experts have said that federal cuts could impact the economic growth in the country.