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The Philly Fed index measures manufacturing activity in Pennsylvania, New Jersey and Delaware It climbed to 20.4 from 16.7 in November, the highest since April 2005. The Philly Fed employment index rose to 6.3 from a minus .5, the highest level since October 2007.
Gains in new orders slowed In December, pointing to less demand in early 2010. This trend is normal after the holiday season.
Manufacturing activity was spurred by increased exports and sharp inventory reductions.
John Herrmann of Herrmann Forecasting said: "The economic recovery and the manufacturing recovery remain on track, with significant improvements expected for next year."
Separately, leading economic indicators increased for the eighth straight month.
The Conference Board's gauge of the economy's outlook for the next three to six months climbed .9%, capping the longest series of gains since 2003 -- 2004.Specific components include:
- Shipments fell a tad to 15.3 from 15.7
- Prices paid jumped to 33.8 from 15.7
- Prices received fell to a minus 1.8 from minus 1.5
- The gauge of future expectations fell to 24.4 from 36.8 in November.
While there are a lot of numbers here, manufacturing has been improving and expectations for the trend to continue into 2010 are encouraging. Let's keep in mind that manufacturing accounts for 20% of GDP.
Do you believe that the economy is gaining momentum?
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Reader Comments (Page 1 of 1)
12-17-2009 @ 9:32PM
william lindblad said...
To your question - I answer with a question.
The index that you are looking at is really comprised of "warehouse" manufacturing. In other words it is goods that were made elsewhere, put in a warehouse and shipped. That's the bulk of it. The region that you speak of does not manufacture much, at least at present. Go to Bethlehem. The vast steel plant of the same name is a rusting hulk. The small mills of this region are long gone. N.J. - the list of closings are so vast that it is near incomprehensible, but it includes Dupont, Hercules, Ford, GM, International Harvester, Motorola, Purolator and many more. Are things getting better? Depends on ones outlook. These were good paying positions that were filled with people with H.S. educations or less, and not everyone is blessed with the intellect, or financial ability, to gain higher education.
I rest my case. Germany has had a re-education system in place for years and as far as the job market goes - it's a dismal failure. Not everyone is cut out to be a rocket scientist and that is a big problem. Decent paying jobs for the masses are a must. They are always going to be in the majority, and it is the majority that will be the consumer, and consequently, the consumer that drives the economy.
Without this, conditions just continue to decay.