MacroMicro_Global

US: Strong economic data lift stocks to record highs

DJ:DJI   Dow Jones Industrial Average Index
US Non-farm Payrolls up 916K in March, unemployment rate dropped from 6.3% to 6%. The March Manufacturing PMI registered a record high 64.7 percent, and the March Services PMI registered at a 16-year record high 63.7 percent.

As we mentioned before, the US economy in Q2 would be benefited by the Manufacturing and Services industry.

MM Analysis
US Non-farm Payrolls up 916K in March, unemployment rate dropped from 6.3% to 6%. In particular the education and health services up by 101k and the professional and business services up by 66k, showing that the vacinnation has helped the SMEs to recover. Construction ( + 110k ) and Manufacturing ( +53k ) industries has also backed strong support on the US economy recovery.

The March Manufacturing PMI registered 64.7 percent, an increase of 3.9 percentage points from the February reading of 60.8 percent. New orders 68 percent, Production 68.1 percent and Backlog of Orders 67.5 percent are in a fast growing direction. Customers’ Inventories 29.9% has been at historically low levels.

Besides the above indexes, a low inventory-sale ratio on January shows that manufacturing cycle would continue due to the capital injection by the US government.

The March Services PMI registered at a 16-year record high 63.7 percent, an increase of 8.4 percentage points from the February reading of 55.3 percent. Employment 57.2%, comments from respondents include: “Have recalled everyone put on waivers and made new hires” and “Additional employees added to service the need of new customers at new locations.” Showing a high probability for corporate to hire more and a optimistic outlook on the labor market, boosting consumer confidence and the US Q2 economy.