Encouraging news on jobs front

The employment report for January pleasantly surprised the experts as companies added 243,000 jobs.

Leading the charge were professional and business services, but next came the manufacturing sector that added 50,000 jobs on top of 32,000 in December, according to the U.S. Labor Department.

That is the biggest gain in a year for the nation’s factories. It may not be sustainable, but there are other good signs: growth in new factory orders rose to a nine-month high in January, USA Today reported.

When manufacturing increases, service and supply businesses do as well.

Economists say the job gains are due to robust auto sales, falling productivity and slightly more confidence in Europe.

Vehicle sales in January increased to a seasonally adjusted rate of 14.2 million — the best in years.

Factory productivity leveled off to a 2.8 percent gain last year, down from 6 percent in 2010.

Europe’s economy is still an unknown, but accounts for only 20 percent of U.S. exports. And European leaders have instilled some confidence by vowing to avoid wreaking havoc in the global economy.

Consequently, American companies are feeling more confident in Europe, analysts say.

Should the U.S. construction market come alive, American factories will benefit all the more.

All in all, an encouraging report.