U.S. and Ezone Services Improved Significantly Last Month

April 7, 2010

The U.S. service-sector purchasing managers index rose 2.4 points to 55.9, while its Euroland counterpart almost matched that impressive gain step-for-step with a 2.3-point advance to 54.1.  Both readings connote solid positive growth and indicate that economic recovery has become more broadly based in each region.  The U.S. held a 1.3-point advantage over Euroland in services last month, 5.9 points better than its 4.6-point disadvantage four months earlier.  Between November and March, the U.S. and Euroland PMI-manufacturing indices rose by 5.9 points to 59.6 in the United States and 5.4 points to 56.6 in Euroland, which widened America’s advantage in that category by five points to 3.0.  The 4.3-point sum of the two spreads gave the United States its best combined advantage in nine months.  Taken together, the evidence suggests that a relapse into renewed recession has been averted and that the upturn in the OECD is becoming more self-sustaining.  Emerging economies continue to perform considerably better than the advanced ones, however.

PMIs U.S. Ezone   U.S. Ezone   Sum of
  Services Services Spread Mf’g Mf’g Spread Spreads
Feb 2009 42.1 39.2 +2.9 35.7 33.5 +2.2 +5.1
March 41.2 40.9 +0.3 36.4 33.9 +2.5 +2.8
April 43.9 43.8 +0.1 40.4 36.8 +3.6 +3.7
May 44.5 44.8 -0.3 43.2 40.7 +2.5 +2.2
June 46.3 44.7 +1.6 45.3 42.6 +2.7 +4.3
July 46.7 45.7 +1.0 49.1 46.3 +2.8 +3.8
August 48.2 49.9 -1.7 52.8 48.2 +4.6 +2.9
Sept 50.1 50.9 -0.8 52.4 49.3 +3.1 +2.3
October 50.1 52.6 -2.5 55.2 50.7 +4.5 +2.0
November 48.4 53.0 -4.6 53.7 51.2 +2.5 -2.1
December 49.8 53.6 -3.8 54.9 51.6 +3.3 -0.5
Jan 2010 50.5 52.5 -2.0 58.4 52.4 +6.0 +4.0
Feb 53.0 51.8 +1.2 56.5 54.2 +2.3 +3.5
March 55.4 54.1 +1.3 59.6 56.6 +3.0 +4.3

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.

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