(menafn – ecpulse)
Today several data and indexes are to be released regarding the labor and manufacturing markets of the superpower to most probably show once again that enhanced labor & business conditions continue on supporting economic growth while that prices pressures continue on being subdued and the banking sector is gaining momentum as seen throughout the stress tests that were revealed yesterday.
If truth be told throughout this past period the major pillar behind the constant moderate revival of the country that boosted growth as well is the business conditions as seen within prior earnings released by huge known U.S corporations and also throughout several data regarding the services, manufacturing and consumer spending that keep on showing a steady expansion of these activities.
Accordingly later on today we may watch on one hand a better incline Philadelphia Fed Manufacturing Index for this month as it is projected to come in around 12.0 from 10.2 while that the monthly survey by the New York Fed over the manufacturing activity in New York State or in other words the empire manufacturing for the same period could have slightly plunged to 17.50 from 19.53, yet it still indicated an expansion that may have only slowed down this month.
And turning to the labor market which keep on releasing better-than-forecasted data as witnessed throughout this past period where more workers are being added and firings are easing the initial jobless claims for instance for March 10 could have also eased down to 357 thousand from 362 thousand confirming that the number of people filing for unemployment benefits in the previous week keep on declining gradually.
While that prices pressures or other words inflation remains under control as already attested and forecasted by the Fed and FOMC members with today's PPI of last month projected to only rise up faintly to 0.5 percent from 0.1 percent and plunge to 3.3 percent from 4.1 percent for the year ending February while that the Core PPI of last month could fell to 0.2 percent from 0.4 percent.
As for the banking sector, it is actually strengthening up as we saw yesterday the Federal Reserve's stress tests showing us that this sector healing considerably from the banking crisis that was taking place three years ago as this time none of the country's banks were ordered to recapitalize unlike banks on the EU area with in fact 15 banks of the 19 ones tested by the Fed were deemed healthy.
The only exception was Citigroup since that it failed the test although it argued that it had the capital to withstand the Fed's severe stress scenario yet Citi its capital ratio was slightly below the Central's bank's 5.0 percent threshold and its leverage ratio was 2.9 percent; also below the 3.0 percent minimum that was set by the Fed to accordingly watch the bank shares plummet yesterday by 3.4 percent and close at 35.21.