Prospect of economic recovery in US is boosted by strong data

 
Julian Harris
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HOPES for a sustained recovery in America were boosted by the publication of three sets of positive economic data, yesterday.

The pace of growth in the US service sector picked up in September, a widely regarded business survey showed, while an ADP report said that private employers across all sectors added 162,000 jobs in the month.

And applications for home mortgages soared last week, according to a separate survey from the Mortgage Bankers Association.

The MBA revealed that its seasonally-adjusted measure of mortgage application activity jumped 16.6 per cent in the week ending 28 September.

Meanwhile, the Institute of Supply Management’s non-manufacturing survey edged up to 55.1 from 53.7 last month, signalling quicker growth across the economy.

And the jobs news from ADP, a payrolls processing firm, added to the bullish tone, although the figure failed to significantly boost markets.

“ADP has not done a very good job of predicting the subsequent [Labor Department] payrolls print,” said Eric Stein of Eaton Vance Investment Managers.