US Manufacturing and Spending Show Recovering Economy

U.S. factory activity rebounded from an eight-month low in February and consumer spending rose more than expected in January, suggesting the economy was regaining some strength after a recent slowdown.

The signs of momentum were also evident in other reports on Monday that showed a brisk increase in automobile sales in February and a surprise gain in construction spending in January, despite unseasonably cold weather.

“The economy is beginning the slow process of digging its way out of the weather-induced slowdown of recent months,” said Millan Mulraine, deputy chief economist at TD Securities in New York. “This upward momentum should be sustained in the coming months”

The Institute for Supply Management said its index of national factory activity rose to 53.2 last month after slumping to 51.3 in January, which was the weakest reading since May.

A reading above 50 indicates expansion in the factory sector, and February’s rise reversed two straight months of slow growth.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza