December 30, 2009
– Comments (1)
December Chicago PMI 60.0 vs 55.1 consensus, prior 56.1
This is extremely good news for Energy stocks.
The most encouraging piece of data came from the labor sector. After 24 consecutive months, the employment index finally broke the 50.0 threshold as the index jumped from 41.9 to 51.2. While we knew that production was increasing in the auto sector over the last month, and with it a small rise in employment was inevitable, the sizable increase in the index signals a more broadly-based surge in demand for labor. The production index provides evidence of this as the index rose from 57.6 to 65.8, its highest rate since September 2008. The rate of production growth should continue as both new orders and order backlogs rose by their fastest rate of expansion since June 2007 and August 2008, respectively. If this trend in production holds up nationwide, the U.S. may have finally hit the bottom in the manufacturing labor contraction cycle...