ISM: Economic activity in manufacturing sector expanded in March and overall economy is expanding. Index stood at 59.6. An indication above 50 is considered to be expansionary.
17 manufacturing industries have shown growth.
Among the components, Inventories and Price paid have shown significant changes to the levels from February.
Inventories contribution looks a bit unsustainable at this level of 55.3
General commodity prices are also increasing and so the price paid component has increased.
PMI at a glance in last 12 months.
Month PMI Month PMI
Mar 2010 59.6 Sep 2009 52.4
Feb 2010 56.5 Aug 2009 52.8
Jan 2010 58.4 Jul 2009 49.1
Dec 2009 54.9 Jun 2009 45.3
Nov 2009 53.7 May 2009 43.2
Oct 2009 55.2 Apr 2009 40.4
Average for 12 months – 51.8
High – 59.6
Low – 40.4
Net this report suggests economic recovery is intact and markets are poised for a strong growth ahead of time.
Unemployment: Much awaited unemployment report hit the electronic screens on an EASTER holiday. This report came at the heels of negative reports from ADP. Market has been looking at a range of -40,000 to 400,000. Final report indicated that employers have added 162,000 people. This number is a reasonably good number in the light of additions being expected of Census related hiring. Census hiring stood at 48,000 and will increase in the periods ahead of us.
Unemployment rate stood at 9.7%
March employment came from temporary help services , health care and Census hiring. Job reductions are still happening in Financial industry and information technology industry.
Non Farm payroll employment for January and February has been revised from -26000 to +14000 and -36000 to -14000 respectively.
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