Like the jobs report released two weeks ago, these stronger-than- expected reports confirm that the economy’s performance in the second quarter will not be as abysmal as thought a month or so ago.

The economy’s performance going forward will depend mightily on how serious the upsurge in cases becomes, how diligently states respond and how the public’s behavior is affected by the upsurge in infections.

For the first time since February, the ISM manufacturing index leaped over the 50 threshold, indicating that activity moved back into expansionary territory after hitting the lowest point in more than 20 years.

Mounting health concerns derailed the bulls on Wall Street, raising doubts about the durability of the nascent economic recovery and sending stock prices sharply lower this week.

For the most part, economic indicators are showing more strength than expected, confirming that the worst of the Covid-19 recession is behind us.

At its latest policy meeting this week, the Federal Reserve reiterated its firm commitment to keep interest rates at rock-bottom levels and retain its formidable pump-priming efforts, including purchasing copious amounts of Treasury and agency securities, as far as the eye can see.

The wall of worry took an unexpected turn on Friday when the Labor Department issued a surprisingly upbeat jobs report, defying consensus expectations that the economy lost several million more jobs in May.