Saturday, February 2, 2013

US-employment and manufacturing rise –stock market on five year high

The main US share index closed at a five-year high on February 1, buoyed by official data showing that the economy added more jobs than previously estimated at the end of last year. The Dow Jones finished up 1.1% or 149 points to 14,010, the first time it had passed 14,000 since October 2007. The Labor Department said that in November and December the economy added 127,000 more jobs than first thought. Investor sentiment was further lifted by strong manufacturing output data.
The employment and manufacturing figures were a welcome boost to the markets, as they came just two days after other official data estimated that the US economy contracted by 0.1% in the final quarter of 2012. For January, the US economy added 157,000 new jobs, slightly below forecasts. Meanwhile, the unemployment rate ticked up to 7.9% in January, from 7.8% in December. In 2012, an average of 181,000 jobs a month were created, the Labor Department said. The manufacturing figures came in a survey from financial data firm Markit. Its latest purchasing managers' index rose to 55.8 last month, up from 54 in December. A reading above 50 indicates growth.

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