- Yelena Shulyatyeva, an economist with BNP Paribas
Earlier we have compared the world's largest economy with a patient in the hospital, who is struggling to cure. Moreover, a disease can progress and effects will be almost inevitable. Even Janet Yellen claimed the Fed will keep supporting the economy for some time, trying to calm down markets after promising to make a rate hike in 2015.
Wednesday's report, however, is suggesting the economy is feeling better, as private sector added 191,000 jobs in March, staying around strong psychological level of 200, however, slightly missing expectations for a 192,000 figure. Small businesses added 72,000 total jobs, while medium-sized entrepreneurs hired 52,000 people. Large companies also followed their example and created 67,000 new positions, meaning the recovery in the labour market is getting broader. The data also heightens expectations for Friday's official non-farm payrolls report and the unemployment rate that can be a clear indication the economic recovery is on the way and there is a thaw in the labour market.
One of the key sectors is coming out from the deep winter slumber. With strong figures across all industries and business size classes, the economy is likely to create more jobs in the coming months, shrugging off the negative weather effects.
© Dukascopy Bank SA