Industries Rising After Strong Employment Data – Industry Roundup
Shares of industrial and transportation companies rose as traders bet strong US economic growth could offset the effects of inflation.
Initial jobless claims, an indicator of layoffs, fell to 166,000 in the week ending April 2, from a revised 171,000 the previous week, the Labor Department said. It was the lowest since November 1968, when the labor force was less than half its current size.
A strategist said the pandemic has created inflationary conditions in the form of supply chain lockdowns and worker shortages that may soon fade alongside inflation. “We had tight supply and high demand with stimulus; no doubt it would have been nice if we hadn’t had a labor shortage,” said Jim Paulsen, chief investment strategist at fund manager The Leuthold Group.
“Everyone had agreed that inflation was transient due to supply restrictions. ‘Transient’ is now a four-letter word. You can’t use that in financial circles. The pandemic has lasted longer than us. don’t think so.”
Supply chains remain under pressure from the fallout of the pandemic.
Manufacturers are struggling to maintain some of their operations in China as prolonged and expanded Covid-19 lockdowns choke off supplies and clog transportation hubs.
Many companies may reconsider their exclusive reliance on China as a manufacturing hub in the wake of the pandemic disruptions, Paulsen said.
German industrial production rose 0.2% in February from the previous month in calendar terms, statistics office Destatis said on Thursday.
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(END) Dow Jones Newswire