5 Manufacturing Stocks To Grab On Blockbuster Jobs Report

Fresh milestones in Friday’s Labor Department jobs’ report hinted at a bustling American economy. The S&P 500 index rose more than 1% in the weekend trading session, as the news of 223,000 job creations in the United States mirrored healthy gains across a wide range of industries, from transportation and manufacturing to retailing and healthcare.

Among all, the manufacturing sector calls for much-needed attention. An upturn in production and new order numbers in May’s Institute of Supply Management (ISM) report reveals that the sector is currently gathering steam and will not cease hiring in the upcoming days.

Against this opportune backdrop, investors can bet on selective manufacturing stocks to fetch alluring returns.

Joblessness Hits 18-Year Low, Manufacturers on Hiring Spree 

Defying fears of overseas trade war, U.S. businesses have made it clear that hiring will not be ceased. The labor market is tightening and has noted the greatest streak of job growth this May. The joblessness rate dipped to 3.8%, the lowest level since the dot-com roar of early 2000. U.S. unemployment rate can fall as low as 3% by 2019-end — per Chief U.S. Barclays Economist Michael Gapen. Also, a 2.7% year-over-year upswing in May’s average hourly earnings wiped out fears of wage stagnation.

Exclusively, the manufacturing sector added around 18,000 jobs in the United States in May, counting a rise of 6,000 employees in machinery. So far this year, the sector is booming with a recruitment rate of 259,000. The latest ISM data revealed that the Employment Index reached 56.3% in May, reflecting an upswing for the 20th consecutive month. The sector added 222,000 new jobs last year, recommencing a recovery that had paused in 2016 and 2015.

Also, manufacturers are paying better than other jobs. Average weekly earnings for manufacturing employees came in at $1,097.52 last month, more than $928.74 for the private sector taken together.

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