Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: US manufacturing delivers

While you were sleeping: US manufacturing delivers

April 2 (BusinessDesk) – Equities advanced, pushing the Standard & Poor’s 500 Index to a record high, as the latest manufacturing data showed that the US economic recovery remained on track.

The Institute for Supply Management’s index increased to 53.7 in March from 53.2 a month earlier, a sign that the effects of the harsher-than-usual American winter are beginning to wear off. Of the 18 manufacturing industries, 14 reported growth in March, according to the report.

"There's a whiff of spring in the economic data, which means we're starting the second quarter with signs that the economy is maintaining the kind of reasonable growth that will continue to support the market," Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments, told Reuters.

Separately, Markit’s US manufacturing PMI fell to 55.5 in March, down from 57.1 in February.

“The fall in the composite Manufacturing PMI masks the ongoing resilience of output, new orders and employment growth, all of which continued to rise at historically strong rates in March,” Chris Williamson, chief economist at Markit, said in a statement. “That’s because the PMI also includes a measure of supplier delivery times, which dragged the PMI down but only because deliveries were quicker as a result of improved weather.”

“The survey indicates that factory output growth has picked up again after the weather-related disruptions seen at the start of the year, presenting policymakers with an encouraging picture of a healthy goods-producing sector that is generating jobs at the rate of 15-20,000 per month,” Williamson said.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.29 percent, the Standard & Poor’s 500 Index gained 0.33 percent, while the Nasdaq Composite Index climbed 0.99 percent. Earlier in the session, the S&P 500 rose as high as a record 1,884.60.

Gains shares of Cisco and Boeing, last up 2.1 percent and 1.6 percent respectively, propelled the Dow higher.

In Europe, the Stoxx 600 Index ended the day with a 0.6 percent advance from the previous close. Germany’s DAX increased 0.5 percent, while both the UK’s FTSE 100 and France’s CAC 40 added 0.8 percent.

Markit’s euro-zone manufacturing PMI slipped to 53.0 in March from 53.2 February, unchanged from the initial estimate.

“Despite having cooled slightly in March, the euro area manufacturing sector continues to enjoy its best spell of growth since early-2011,” Williamson said in a statement. “The goods-producing sector is on course to provide a meaningful boost to the overall economy in the first three months of the year.”

Separate data showed the unemployment rate in the euro zone held at 11.9 percent in February, unchanged after a revision for the previous month.

China’s PMI as measured by HSBC and Markit Economics slid to 48 in March, the lowest reading since July, from 48.5 in February. A separate PMI edged higher to 50.3, up from 50.2 the previous month, according to Chinese government data.

The reports underpinned expectations the government might increase its stimulus efforts to help boost the pace of growth in the world’s second-largest economy.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news