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Growth in United States manufacturing continues to lead economy
The U.S. economy has been leaning largely on manufacturing as it crawls away from the recession. U.S. manufacturing activity rose to the highest level in almost seven years in Feb., its 19th consecutive month of expansion. Growth in the manufacturing sector shows no urgent signs of slowing down, but increasing prices , persistent joblessness and shaking consumer spending may put on the brakes sometime in the near future. Article resource - US manufacturing index keeps expanding, but obstacles lie ahead by MoneyBlogNewz.
February ISM production index
The Institute for Supply Management reported that the factories increase production to meet the demand while there was the highest increase since May 2004 in U.S manufacturing in February. A monthly production index is published by the ISM which is a nonprofit industry association that can be found in Tempe, Arizona and is an economic indicator several look to. The ISM production index, also known as the factory index, increased from 60.8 in Jan to 61.4 in Feb.. Readings higher than 50 percent signify growth. An increase in the Feb. production index to 60.9 was expected.
U.S. manufacturing gains momentum
Production stimulated by exports and new orders drive the production index up. The ISM's export index rose from 62 in Jan to 62.5 in Feb.. Then there was a change from 67.8 to 68 in the new orders index. That is the strongest rate since Jan 2004 that has occurred. The ISM production index climbed from 63.5 to 66.3. There was a decrease from 52.4 to 48.8 in the inventories index. Continued replenishment will be needed with the supply chain which is shown in the inventories index decreasing. That means the manufacturing sector should be expanding. Manufacturers could get an additional boost in 2011 from a government program that speeds up tax depreciation for equipment purchases, an incentive integrated in an $858 billion tax cut bill passed in December.
Different challenges in the future
The hiring sector went up with the manufacturing activity. The highest rate for the ISM employment index was hit since Jan 1973 with the index going from 61.7 to 64.5. Inflation should be considered. It will always exist. Rising commodity prices and energy prices were suggested with the ISM index of prices paid by manufacturers went up from 81.5 to 82. Customers are already paying more for gas and are concerned about the future. In January, a rise of 0.2 percent was shown in customer spending though, which is the slowed rate since June. That means that manufacturers could be in for a surprise here soon with the increased production and less getting.
Information from
Bloomberg
bloomberg.com/news/2011-03-01/ism-index-of-manufacturing-in-u-s-rose-to-61-4-in-february.html
Wall Street Journal
online.wsj.com/article/SB10001424052748704506004576174273942074528.html?m od=googlenews_wsj
CNN Money
money.cnn.com/2011/03/01/news/economy/ism/index.html
February ISM production index
The Institute for Supply Management reported that the factories increase production to meet the demand while there was the highest increase since May 2004 in U.S manufacturing in February. A monthly production index is published by the ISM which is a nonprofit industry association that can be found in Tempe, Arizona and is an economic indicator several look to. The ISM production index, also known as the factory index, increased from 60.8 in Jan to 61.4 in Feb.. Readings higher than 50 percent signify growth. An increase in the Feb. production index to 60.9 was expected.
U.S. manufacturing gains momentum
Production stimulated by exports and new orders drive the production index up. The ISM's export index rose from 62 in Jan to 62.5 in Feb.. Then there was a change from 67.8 to 68 in the new orders index. That is the strongest rate since Jan 2004 that has occurred. The ISM production index climbed from 63.5 to 66.3. There was a decrease from 52.4 to 48.8 in the inventories index. Continued replenishment will be needed with the supply chain which is shown in the inventories index decreasing. That means the manufacturing sector should be expanding. Manufacturers could get an additional boost in 2011 from a government program that speeds up tax depreciation for equipment purchases, an incentive integrated in an $858 billion tax cut bill passed in December.
Different challenges in the future
The hiring sector went up with the manufacturing activity. The highest rate for the ISM employment index was hit since Jan 1973 with the index going from 61.7 to 64.5. Inflation should be considered. It will always exist. Rising commodity prices and energy prices were suggested with the ISM index of prices paid by manufacturers went up from 81.5 to 82. Customers are already paying more for gas and are concerned about the future. In January, a rise of 0.2 percent was shown in customer spending though, which is the slowed rate since June. That means that manufacturers could be in for a surprise here soon with the increased production and less getting.
Information from
Bloomberg
bloomberg.com/news/2011-03-01/ism-index-of-manufacturing-in-u-s-rose-to-61-4-in-february.html
Wall Street Journal
online.wsj.com/article/SB10001424052748704506004576174273942074528.html?m od=googlenews_wsj
CNN Money
money.cnn.com/2011/03/01/news/economy/ism/index.html