US companies are surprisingly optimistic. The corona numbers in the United States are skyrocketing and President Trump is causing chaos. Still, the mood in US industry is better than it has been in years.
US companies are surprisingly optimistic
Despite the sharp rise in the number of corona infections, optimism is spreading in the US economy. The purchasing managers’ index of the market research institute IHS Markit for the US industry surprisingly rose in November from 53.4 to 56.7 points – this is the highest value in more than six years. The indicator for service providers also increased: from 56.9 points in October to 57.7 points. This is the highest level since April 2015. Economists surveyed in advance had expected a decline in both sectors. You can browse here for cyrpto news.
The purchasing managers index measures the mood in companies. Values of more than 50 points indicate an increase in economic activity; less than 50 points indicate shrinkage. The index is considered to be one of the first key indicators of how the US economy is reacting to the election of future president Joe Biden and advances in vaccine development. “The upswing reflects a continued rise in demand, which is causing companies to take on as many new employees as they have not since the survey began in 2009,” says IHS Markit chief economist Chris Williamson. In the United States, a good ten million people still have fewer jobs than before the pandemic started in spring. But although the number of infections and deaths is rising and some states have tightened their restrictions, experts assume that the US economy will grow in the fourth quarter.
An opposite economic trend is thus emerging on both sides of the Atlantic. In the euro area, the IHS Markit purchasing managers’ index fell by almost five points to 45.1 points in November. Service providers in particular suffer from lockdowns or partial shutdowns, as in Germany. The US data also caused movement in the financial markets. Stock prices rose on Wall Street, with the euro falling from just under $ 1.19 to $ 1.1818 following the announcement of strong US data.