(menafn – ecpulse) This week like many others released different reports, data along with the Feds Beige Book and Bernanke testimony to once again confirm that the superpower revival pace continues on being gradual and taking place moderately with unending challenges faced locally and globally to paint an unclear portrait of the current economical conjuncture.
As the week started the ISM services of last month was released and was highly forecasted to come out at around 53.4 but came out cheerfully instead at 53.7 from a prior reading of 53.7 in January; the fasted pace in a year as orders picked up for a fourth straight month and therefore continue on expanding upwards gradually.
Yet this scenario regarding the services activities on the U.S soil is much different and gloomier actually on the EU soil as today as well Germany; the strongest E.U economy, released its final reading of its PMI services that came out gloomily at 51.8 from 52.2 while that France PMI plummeted slightly to 45.1 since that the region is witnessing unending downside pressures created mainly by the ongoing debt crisis.
Now this continuous pickup of these services industries that as we know make up almost 90 percent of the economy would of course help on widening the economical expansion of the country and also support further the struggled labor market that will contribute in sustaining the household demand.
Afterwards throughout the week we had the Federal Reserve Chairman; Ben S. Bernanke, confirmed that the superpowers recovery and growth remains on taking place at a moderate pace while that the FED is ready to act this coming period and once again the Chairman affirms that the unending crisis witnessed in the E.U region will actually pose "significant risks" to the U.S.
In fact regarding the E.U crisis we should not forget that last time Bernanke testified in front of the house committee he had declared that Europe must put in further efforts to support its banks throughout the unending debt financial crisis that is taking place since that according to him the current economical and financial conjuncture of this region "remains difficult" and as we saw it continues on postponing a full global economic recovery.
Plus the Chairman testified to the US house committee on the present European crisis and attested out clearly that " Europe needs to step up" and do a lot more and believes actually that Europe has the means to solve its own predicament to avoid a deepening of the crisis that will of course affect deeply the superpower economical health as attested today.
However the present situation in the U.S remains firm and moderate so far this year according to the Chairman, as growth remains spotted although a slower growth expansion for the first quarter was shown last week with in fact the second reading of the annualized GDP of the first quarter coming in slower as expected at 1.9 percent from a prior estimate of 2.2 percent.
As for the labor market, Bernanke affirms that its conditions improved clearly last year and earlier this year, yet this key sector remains on strongly struggling to fully recover with a reported pace of job gains slowing down to an average of 75 thousand added employees per month in April and May and therefore more efforts are to be put to allow further stronger improvement within the countrys labor market.
Not forgetting that so far 8.2 percent of the American population are unemployed as shown for the month of May while that Nonfarm payrolls decreased this past month to an add of 69,000 jobs, well below median estimates of an add of 115,000 jobs and the prior revised estimate of 77,000 added jobs, a clear sign that employers are discouraged to add workers due to the global and local mixed and unclear economical conditions.
Never less as usual he added that prices pressures remain well subdued and that the economys performance over the medium and longer term is depending mainly on the course of fiscal policy and therefore these policymakers are confronting challenges that have to be put according to the Chairman on a "sustainable path" and accordingly the Fed is ready to act but details remain under discussion.
Now these same points were also confirmed and attested by the Feds Beige Book in which it has been attested across all twelve Federal Reserve Districts that economical growth expansion remains spotted as always but lost some slight momentum throughout this past period as already stated before by the Fed, still some districts noted mixed or weakening activity from a state to another.
Yet the Fed members added that "automobile sales generally remained strong" to accordingly witness the strongest demand throughout this sector; auto and steel manufacturing while that that overall spending plans were positive in most of the districts.
Plus it has been pointed out that the demand for services remain positive across the whole nation unlike gloomy services reports released from major economies such as France and Germany, to actually watch the worlds leading economy services activities expand at a slight faster pace this past month, indicating once again that overall business conditions continue on supporting the countrys growth.
And as the week came to an end we watched the countrys trade deficit came in at 50.1 billion of dollars; better of course than a revised deficit of 52.6 billion from 51.8 yet worse than the projected deficit of 49.5 billion as reported by the countrys commerce department today which is a good sign, yet overall trading is weak due to the present worldwide conjuncture is economically hurt by the sovereign EU debt crisis while that the local and global revival is only taking place slowly and gradually.
No wonder that imports and exports all in all eased in May with in fact the exports falling by 0.8 percent or to 182.9 billion from a prior record high of 184.4 billions while that the imports as well eased by 1.7 percent to 223 billion from a record high of 237.1 billion the prior month since that the present and past global conditions limited trading.
Still Canada; the superpowers territorial neighbor and major trading partner, which saw also a worse-than-projected trade balance of actually 0.37 billion in May; below a predicted surplus of 0.18 billion and compared actually to a prior revised surplus of 0.15 billion from 0.35 billion as a result once again of the current weakened global economical conjuncture.
Plus the countrys jobless levels remain unchanged at 7.3 percent according to Statistic Canada due to a clear slowing of the job growth with factories and schools hiring while construction jobs plummeting significantly by actually 27 thousand in May yet part-time jobs rose by 6300 within the same period but full-jobs inclining only by 1400.