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Tuesday, April 6, 2021
Employment growth has soared, and service activities have reached record levels, and it is still only April.
Over the past few months, we have written in the Morning Briefing about the upcoming economic activities this year.
The days of achieving this growth have just begun.
On Monday, as the ISM’s activity index soared to a record high, data on service industry activity from IHS Markit and the Institute of Supply Management greatly exceeded analysts’ expectations. IHS Markit̵
Anthony Nieves, chairman of the ISM Service Industry Survey Committee, said: “The service industry PMI reached a record high of 63.7%, which was 8.4 percentage points higher than the 55.3% in February.” “The previous high was in October 2018 when the service industry PMI reached 60.9%. The data in March showed that the service industry has grown for 10 consecutive months. In the past 134 months, two of them have grown. The only two months of contraction are March 2020 and April 2020 .
Nieves added that the report reflects “a significant increase in the service industry growth rate in March. Respondents’ comments indicate that the removal of restrictions related to the coronavirus (COVID-19) pandemic has released pent-up demand for many of its people. The services of their respective companies. Production capacity limitations, material shortages, weather, and logistics and human resource challenges continue to disrupt the supply chain.”
Chris Williamson, chief business economist at IHS Markit, said on Monday, “The recent growth of the service industry has not shown signs of abating. Another impressive performance in March At the end of the first quarter, the PMI survey showed that the economy is growing at an annual rate. About 5%.”
These reports also followed last Friday’s March Employment Report, which also exceeded expectations, showing an increase of 916,000 jobs last month and the unemployment rate dropping to 6%. Including the January and February job growth revisions, the number of Americans employed at the end of last month was approximately one million more than previously reported.
These reports are at the forefront of a huge summer of US growth. Last month, we noticed that Wall Street was struggling to keep up with economic development, and the stock market continued to rise. In the past two working days, the trend seems to continue as the three major economic data are far higher than expected, and inventories at the beginning of this week have reached record levels.
For example, the economics team of UBS expects GDP growth rates in the second and third quarters of 2020 to be 10.7% and 8.4%, respectively. However, the company expects Monday’s ISM service index to reach 60, which is nearly 4 percentage points lower than the level of the index.
The company said in a report released on Friday: “As early as January, our forecast of 1mm monthly payroll for the second quarter was greatly boosted. “Now, it seems that we may have become Be cautious. “
They are not alone.
after Myers Abroad, Reporter and host Yahoo Finance Live.Follow him @MylesUdland
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