On Wednesday ADP job figures were released. Private sector employment increased by 214,000 jobs from January to February according to the February ADP National Employment Report. Analysts were predicting increase by 185,000. "Large businesses showed surprisingly strong job gains in February, despite the continuation of economic trends that negatively impact big companies like turmoil in international markets and a strengthening dollar,” said Ahu Yildirmaz, VP and head of the ADP Research Institute. “The gains were mostly driven by the service sector which accounted for almost all the jobs added by large businesses.”
Thursday was marked by Unemployment Claims and Non-Manufacturing PMI figures. In the week ending February 27, the advance figure for seasonally adjusted initial claims was 278,000, an increase of 6,000 from the previous week's unrevised level of 272,000. The 4-week moving average was 270,250, a decrease of 1,750 from the previous week's unrevised average of 272,000. Analysts were expecting decrease to 271,000.
The Non-Manufacturing PMI Index registered 53.4 percent in February, 0.1 percentage point lower than the January reading of 53.5 percent. This represents continued growth in the non-manufacturing sector at a slightly slower rate. According to the NMI, 14 non-manufacturing industries reported growth in February. The majority of the respondents' comments continue to be positive about business conditions. The respondents are projecting a slight optimism in regards to the overall economy.
Focus of the Friday's session was on Trade Balance and NFP figures. The U.S. Census Bureau and the U.S. Bureau of Economic Analysis, through the Department of Commerce, announced today that the goods and services deficit was $45.7 billion in January, up $1.0 billion from $44.7 billion in December, revised. Deficit of $43.8 billion was anticipated. January exports were $176.5 billion, $3.8 billion less than December exports. January imports were $222.1 billion, $2.8 billion less than December imports.
Employers added more workers in February than projected but wages unexpectedly declined, dashing hopes that reduced slack in the labor market was starting to benefit all Americans. The 242,000 gain followed a 172,000 rise in January that was larger than previously estimated, a Labor Department report showed Friday. The jobless rate held at 4.9% as people entered the labor force and found work. Average hourly earnings dropped, the first monthly decline in more than a year.
On Friday, from Australia, Retail Sales figures were released. The trend estimate rose 0.3% in January 2016. This follows a rise of 0.3% in December 2015 and a rise of 0.3% in November 2015. The seasonally adjusted estimate rose 0.3% in January 2016. Analysts were forecasting 0.4% rise. This follows a relatively unchanged December 2015 (0.0%) and a rise of 0.4% in November 2015. In trend terms, Australian turnover rose 4.0% in January 2016 compared with January 2015.
This week markets will be looking at:
Unemployment Claims (Thursday 14:30)
