Evidence of a global economic rebound leads a review of the week’s top stories. Reports showed a recovery in manufacturing in the U.S., China, Japan and Europe. American companies added 162,000 jobs in March, the most in three years.
I don't see nearly as much evidence for recovery as these folks do. The added jobs included Census jobs, which are almost all low-paying temp jobs (I know because I did some Census work in the Spring of 2000). Manufacturing data is showing more evidence for inflation than for increased volumes of orders, with inventories and prices showing the largest category increases in the March 2010 ISM Report. I have been watching shipping and railroad traffic, which has been expanding steadily for about two months (a good sign, I'll admit).
I'm not about to call a recovery. My impression is that the U.S. is bottom-bouncing while businesses await more clarity about the broader economic picture. That could come in a very bad way if some black swan upsets the financial system all over again. Remember, the PIIGS' sovereign debt problems haven't been solved and the U.S.'s sovereign debt problems are just beginning!
