As with the earlier ADP report, the report makes for curious reading. The Production reading added a tad to 64.6 indicating still robust manufacturing activity. However, the pace of New Orders fell at the fastest pace since January
Stronger demand for goods and services is prompting companies to hold the line on firings and expand headcount. Continued progress in the labor market will be needed to boost aggregate income and drive consumer spending, which accounts for almost 70 percent of the economy.
nitial jobless claims rose by 4,000 to 302,000 sticking close now to its pre-recession levels. Of course the upside from these lower readings is a series of strong nonfarm payroll readings. Only the January data point has thus far been below 200,000
The star player today may indeed be European Central Bank chief Mario Draghi as he has teased the market about moving to a form of Quantitative Easing yet few believe that he will actually go there today.