Further cheerful data released this week by the superpower…
This week like previous ones confirm clearly that the superpower is on the right track of recovery and showed more confidence gained towards the future and therefore the coming economic performance of the country throughout this time scale since that overall data so far released regarding overall sectors activities show improvement with mainly this week showing us a clear enhancement of the labor and services sectors.
If truth be told as this week starts we watch the ISM services of last month; a composite diffusion index regarding the services sector conditions across the United States, which was highly forecasted to come out at around 57.3 came out cheerfully instead at 57.3 from 56.8 in January; the fasted pace in a year as orders picked up for a fourth straight month and therefore continue on expanding upwards gradually.
Yet this scenario regarding the services activities on the U.S soil is much different and gloomier actually on the EU soil as today as well the euro area released its PMI composite, which represents services and manufacturing sectors, plummeted to 49.3 in the month of February from 50.4 in January, lower than estimates of 49.7, noting that a reading above 50 means expansion and below is contraction.
Now this continuous pickup of these services industries that as we know make up almost 70 percent of the economy would of course help on widening the economical expansion of the country and also support further labor market gains that will contribute in sustaining the household demand knowing that last month the economy was able to generate 210 thousand jobs.
Plus the most of the sub-indexes were able to climb up and gain further momentum with the new orders have actually inclined to 61.2 from a prior reading of 59.4, business activity rose up to 62.6 from 59.5, inventory sentiment reached up to 61.5 from 58.5, prices paid climbed up to 68.4 from 63.5 although the employment fell faintly to 55.7 from 57.4 and the imports to 52.0 from 55.0.
Furthermore turning to the labor market this week ahead of the jobs report we had the ADP employment change that came out this week once again confirmed an ongoing improvement and actually further enhancement in labor conditions, as the economy created 216 thousand jobs in last month, the third monthly gain in a row.
If truth be told the Roseland, New Jersey-based ADP Employers Services reported today that U.S companies added 216 thousand to the private payrolls in February, after adding 173 thousand jobs revised from 170 thousand in January although the market and overall economists expected a 215 thousand increase in payrolls.
Not forgetting that overall businesses across the US soil added this past month 225 thousand jobs and that the jobless levels throughout the world's leading economy was able to plunge to 8.3 percent and therefore most of the data released this recent past period point to better and further employment gains along with a lower rate of firings.
Accordingly this week's jobs report showed cheerfully that the unemployment level throughout the world's leading economy did not change and remained at 8.3 percent whereas the payrolls for instance, which covers almost 80 percent of workers whom produce the total GDP of the country, were able to climb up cheerfully by 227 thousand jobs, a clear sign that the labor market remains on the right track of recovery.
In fact the past recent portrait of the nation's key sector; the labor market, is lightened by several cheerful and better-than-expected data all in all confirming a constant gradual recovery of this market, knowing that the job growth only over the last six months was the strongest since 2006 to accordingly trigger better wage gains and encourage as we saw a stronger consumer spending while that of course confidence regarding the future is boosted further.
So even the current jobless rate of February remained unchanged at 8.3 percent; it is the lowest level witnessed since February 2009, which was really unexpected by the market when released last month whom projected an unchanged reading of 0.2 percent, showing clearly that companies are gaining confidence throughout this year regarding the local and global economic conditions, knowing of course that this assurance may boost President Barack Obama's re-election.
Furthermore once again payrolls climb further this past month with actually the Nonfarm payrolls increasing this past month by 227,000 jobs, well above median estimates of an add of 243,000 jobs and the prior revised estimate of 287,000 added jobs, a clear sign that employers are giving in efforts to employ more people and that firing eased throughout this past period.
Plus private payrolls increasing cheerfully by 285,000 jobs in February within the private sector; above estimates of 225,000 added jobs while on the other hand manufacturing payrolls cheerfully inclined also above the market projections of 24 thousand jobs to show actually an add of 31 thousand workers throughout the country's manufacturing sector.
Now the Average hourly earnings plummeted slightly to 0.1 percent from a prior reading of 0.2% although the market projected these earnings will stay at the same level for this month while that for the year ending February the average hourly earnings came in at 1.9 percent; below the market forecasts of 2.0 percent while that the Average weekly hours stayed unchanged once again at 34.5 and therefore all in all the overall pay growth did not truly vary.