New data shows that the U.S. manufacturing sector expanded at a faster pace than expected in April – and at its best pace in 10 months. The news has calmed fears of a slowdown in the economic recovery, sending the Dow to a four-year high.
Jim Glassman, a senior economist at JPMorgan Chase (NYSE: JPM), says:
“U.S. manufacturing is benefiting from a whole bunch of things. Not only are markets around Asia growing, the dollar is at very low levels relative to where it’s ever been, so it’s more attractive for companies to locate some production in the U.S. and I think the U.S. benefits from that.”
Although manufacturing is seeing a turnaround, carmakers are still feeling some pain. Both GM (NYSE: GM) and Ford (NYSE: F) posted monthly sales declines, but Chrysler was an exception, reporting a 20% sales rise for April compared to the same time last year.