The Non-Manufacturing PMI registered 57.8 percent in April, 1.3 percentage points higher than the March reading of 56.5 percent and above expectations on decline to 56.2. This represents continued growth in the non-manufacturing sector. The Non-Manufacturing Business Activity Index increased substantially to 61.6 percent, which is 4.1 percentage points higher than the March reading of 57.5 percent, reflecting growth for the 69th consecutive month at a faster rate.
Wednesday's session brought ADP job figures. Private sector employment increased by 169,000 jobs from March to April, missing expectations on an increase by 189,000. Mark Zandi, chief economist of Moody’s Analytics, said, “Fallout from the collapse of oil prices and the surging value of the dollar are weighing on job creation. Employment in the energy sector and manufacturing is declining. However, this should prove temporary and job growth will reaccelerate this summer.”
On Thursday Unemployment Claims figures were released. In the week ending May 2, the advance figure for seasonally adjusted initial claims was 265,000, an increase of 3,000 from the previous week's unrevised level of 262,000. Analysts were forecasting increase to 279,000. The 4-week moving average was 279,500, a decrease of 4,250 from the previous week's unrevised average of 283,750. This is the lowest level for this average since May 6, 2000 when it was 279,250.
Friday's US session was marked by Non-farm payroll figures. Total nonfarm payroll employment rose by 223,000 in April, after edging up in March by 85,000 what was largely expected. In April, employment increased in professional and business services, health care, and construction, while employment in mining continued to decline. In April, both the unemployment rate 5.4% and the number of unemployed persons 8.5 million were essentially unchanged, in line with forecasts.
This week markets will be looking at:
JOLTS Job Openings (Tuesday 16:00)
Retail Sales (Wednesday 14:30)
PPI (Thursday 14:30)
Unemployment Claims (Thursday 14:30)
Empire State Manufacturing Index (Friday 14:30)
Industrial Production (Friday 15:15)
Prelim UoM Consumer Sentiment (Friday 16:00)
