The Economic Train Is Smiling BIGLY Today! More Incredible Data Has Been Released………

The Economic Train is smiling for many reasons today! The Train realizes that our trade deficit is killing our economy from reaching levels it is more than capable of reaching. Our President later today is going to supply a jolt of nitro into its engine when he announces major tariffs against steel and aluminum imports.

Here is more great news for the Economic Train!

From the article linked above:

The Institute for Supply Management (ISM) manufacturing index (PMI) came in at a much higher than expected 60.8 in February, beating the 58.6 consensus forecast. This is the fastest pace of expansion and strongest reading in 14 years, or since 2004.

The overall strength of the PMI is shown in new orders, at 64.2, which are filling backlogs that are now at a 14-year reading of 59.8. In response, firms in the manufacturing index are reporting a need to hire new employees to fill demand and the Employment Index rose 5.5% to 59.7.

Orders for exports are notable in the sample, up 3 points in the month to 62.8, a 7-year high. Orders for imports are also very elevated at an 11-year high reading of 60.5.

Respondents’ Comments

– Availability of electronic components, long lead times, allocations and constraints continue to wreak havoc in the purchasing cycle, with no end in sight at this time.” (Computer & Electronic Products)

– Our business saw [an] increase in fourth quarter, and it continued in January 2018. CapEx purchase deliveries are moving out globally.” (Chemical Products)

– Labor market continues to be tight for supply chain talent in the Southern California area. Overall economy is strong.” (Transportation Equipment)

– Employment is one of our biggest challenges. No labor available.” (Food, Beverage & Tobacco Products)

– Steel market is doing rather well. Everybody is out of what I need.” (Fabricated Metal Products)

– It seems the tax break for business is making a difference. Customers are spending more for capital equipment.” (Machinery)

– Hiring has picked up for direct-hire employees. Due to end-of-2017 performance and improvement in commodity price, there has been an increase in capital budget.” (Petroleum & Coal Products)

– Business is very strong, and our lines are running at full capacity.” (Plastics & Rubber Products)

-We expect to have a strong year in 2018. In expectation, we have added to our sales staff and plan on adding to our production staff.” (Miscellaneous Manufacturing)

– The weakening U.S. dollar in relationship to the yuan is starting to impact importing cost. We are starting to see more supplier price increases.” (Electrical Equipment, Appliances & Components)

Americans are feeling the benefits from the Tax Reform Bill BIGLY!

From the article linked above:

“Increases in the January estimates of disposable personal income and the personal saving rate mostly result from a decrease in personal current taxes, which reflect the effects of the Tax Cuts and Jobs Act (TCJA),” the government agency said. “BEA estimates that the TCJA reduced personal current taxes by $115.5 billion at an annual rate.”

Estimates for wages and salaries in January were adjusted up by $30.0 billion to account for bonuses paid by businesses that are not included in the monthly source data in the Current Employment Statistics from the Bureau of Labor Statistics. This revision reflects one-time bonuses reported by PPD and other outlets after the passage of the TCJA.

Jobless Claims Data is surprising the hell out of the pundits! The lowest level since 1969!

From the article linked above:

The Labor Department said weekly jobless claims fell 10,000 to a seasonally adjusted 210,000, the lowest level for initial unemployment benefits in more than 48 years.

That’s the lowest claims have been since December 6, 1969, when they were 202,000. The previous week’s level was revised down by 2,000 from 222,000 to 220,000.

The 4-week moving average declined 5,000 from the previous week’s revised average 220,500. This is the lowest level for this average since December 27, 1969 when it was 219,750. The previous week’s average was revised down by 500 from 226,000 to 225,500.

Even the Atlanta Federal Reserve had to change their forecast from February 27th of 2.6% GDP Rate for the 1st Quarter of 2018 to 3.5% GDP Rate!

 

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