Three distinct economic indicators have brought solid evidence that the economy is improving:

JOBS, JOBS, JOBS
The ADP National Employment ROSE by 32K in April. Meanwhile, the prior two months’ declines were revised completely away. These increases followed declines in the previous 24 months. This was also the largest job increase since January 2008.

Steven A. Wood of Insight Economics, LLC says, “Private sector employment climbed in April for the third consecutive month, albeit at a relatively modest pace. The job losses of 2008-2009 are now over and the economy is beginning to create new jobs again. Nevertheless, employment is still more than 8 million lower than in January 2008. These data do not account for government workers, including Census, workers, both of which will affect Friday’s Employment Situation report.”

Jobless Claims FELL, Continuing Claims FELL, Extended Benefits FELL, the Insured Jobless Rate remained the same and Emergency Benefits rose. Hiring is picking up.

MORE, MORE, MORE & MORE
In Q1 2010 Nonfarm Business Productivity ROSE; Output ROSE; Hours Worked ROSE; Compensation ROSE, and Unit Labor Costs FELL.

“…Productivity has been accelerating in a typical post-recession pattern where employers are hesitant to hire even as output begins to expand…an indication that there should be few near-term worries about inflation,” says Wood.

LESS PLASTIC, MORE STEEL
Consumer Credit ROSE by $2.0B in March, compared with market expectations for a $3.0B decline. Consumer credit has been contracting monthly on a thirteen consecutive year-on-year decline.

Revolving debt, including credit cards FELL by $3.2B. This is a sign of tighter budgets and has reflected in retail sales and less consumer spending with one exception: Non-revolving debt.

Non-revolving debt ROSE by $5.2B in March, mostly due to the strength of a jump in car and truck sales. This is the second increase in the last 3 months. This is also reflecting in the manufacturing data reported last week.

The economy is showing broad signs of recovery, a solid step toward energizing the housing market.