US Outlook Report: Evidence of Growth Rebound Stacks Up
Encouraging economic data released over the past week suggests the U.S. economy is shifting into a higher gear in the second quarter. The Bloomberg Economic Surprise Index, which measures whether economic data are above or below economists’ consensus expectations, has risen since the beginning of February and turned positive in May, indicating economic data has been coming out stronger than expected.
Of particular importance, the Institute of Supply Management’s (ISM) better-than-expected non-manufacturing index for May rose to 56.3, the highest level since August 2013. ISM’s forward-looking index of new orders for non-manufacturing items climbed to the highest level since 2011. The ISM data is a clear indication of improving business confidence in the U.S. economy.
Moreover, factory orders data from the U.S. Census Bureau also beat the consensus expectations of analysts, rising 0.7 percent in April from an upward revised 1.5 percent climb in March. Factory orders data is a solid forward-looking indicator of future manufacturing activity.
To find out more, check out this week’s US Outlook Report: Bank of the West U.S. Outlook – June 6th, 2014Tags: economy