Non-Manufacturing PMI registered 55.7 percent in April, 1.2 percentage points higher than the March reading of 54.5 percent. This represents continued growth in the non-manufacturing sector at a slightly faster rate. According to the NMI, 13 non-manufacturing industries reported growth in April. The majority of the respondents' comments reflect optimism about the business climate and the direction of the economy.
On Thursday Unemployment Claims figures were released. In the week ending April 30, the advance figure for seasonally adjusted initial claims was 274,000, an increase of 17,000 from the previous week's unrevised level of 257,000. The 4-week moving average was 258,000, an increase of 2,000 from the previous week's unrevised average of 256,000. This marks 61 consecutive weeks of initial claims below 300,000, the longest streak since 1973. The advance seasonally adjusted insured unemployment rate was 1.5% for the week ending April 23, a decrease of 0.1 percentage point from the previous week's unrevised rate.
Friday was marked by NFP data. Total nonfarm payroll employment increased by 160,000 in April. Analysts were predicting increase by 205,000. Over the prior 12 months, employment growth had averaged 232,000 per month. In April, employment gains occurred in professional and business services, health care, and financial activities, while mining continued to lose jobs. Unemployment rate remain stable at 5.0%. In April, average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $25.53, following an increase of 6 cents in March.
This week markets will be looking at:
Unemployment Claims (Thursday 14:30)
Retail Sales (Friday 14:30)
PPI (Friday 14:30)
Prelim UoM Consumer Sentiment (Friday 16:00)
