Posted on 03/04/2005 1:48:21 PM PST by Ernest_at_the_Beach
The US economy created 262,000 new jobs in February, the biggest gain in four months and a sharp increase on January's revised 132,000 figure. According to the Labor Department report, the increase can be attributed to carmakers and recovery in the construction industry.
The 262,000 job creation figure was better than analysts' predictions. US stocks rallied after the news, with the main Dow Jones index closing Friday up 107.5 points to 10,940.5.
Although the separate US unemployment rate rose to 5.4% in February from January's 5.2%, this increase was put down to a rise in the number of active job seekers. Welcome reaction Across the various sectors of the US economy, manufacturing industries added 20,000 new jobs, with much of the gain coming from car workers returning from temporary layoffs, the Labor Department said. Construction industries added 30,000 jobs, as February's better weather made work easier than in January. The service sector added 207,000 positions, with the majority of the new jobs being created in professional and business services. February's figures were broadly welcomed by analysts.
"At long last, for the first time since November 2004, the increase in payrolls exceeded expectations," said John Lonski, chief economist at Moody's Investors Service. Economy expanding Patrick Fearon, economist at AG Edwards and Sons, said the numbers were "pretty good". "The increase in February was the strongest since last October. Even manufacturing had a decent jobs increase in February." February's job creation figures are yet another sign that the US economy is continuing to expand. It makes it more likely that the Federal Reserve will stick to its stated policy of raising interest rates at a "measured pace" into 2005, to keep inflation in check as the economy grows. The US interest rate is currently 2.5% after six 0.5% rises in succession since last June. Less consumer confidence
In a separate report on Friday, US consumer sentiment fell in February. According to the University of Michigan's consumer confidence index, February's final reading was 94.1, down from January's 95.5. Analysts had expected a fall to 94.5. The consumer confidence figure traditionally translates into consumer spending, however, the correlation between consumer confidence and retail sales has not been as strong in recent years.
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Willie read the data selectively.....
And the 262,000 job increase was in non-farm employment., course farming usually drops off in the winter months quite a bit.....
Manufacturing employment decreased,
Government employment increased.
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