US bond yields jump on manufacturing PMI release
Survey highlighted bright spot in the underwhelming employment numbers this morning
As we observed in the case of the employment report, the bright spot in an otherwise modest gain in employment was manufacturing. The 30-year US Treasury bond was flat after the employment report, but fell more than a point in price, mostly after the PMI release.
One additional job in manufacturing adds a lot more to GDP than one additional job in fast food or health care. General Motors has $764,000 in sales per employee, vs $58,000 for McDonald’s. Manufacturing may be a small part of GDP, but an increase in manufacturing employment growth adds perhaps ten times more to overall sales than an equivalent increase in fast-food or retail employment.