Businesses in U.S. Expand at Faster Pace Than Estimated, ISM Index Shows

[Godhumor]

Source: Bloomberg

Internal Title: Chicago Purchasing Managers Index Increases to 68.8

Businesses in the U.S. expanded more than forecast in January at the fastest pace since July 1988, indicating the world’s largest economy has momentum at the start of the year.

The Institute for Supply Management-Chicago Inc. said today its business barometer rose to 68.8 this month from 66.8 in December. Figures greater than 50 signal expansion. Economists forecast the gauge would slip to 64.5, based on the median estimate in a Bloomberg News survey.

Manufacturers such as Caterpillar Inc. are benefiting from a pickup in consumer purchases and stronger export markets in emerging economies such as China. Consumer purchases in the final three months of 2010 were the strongest in more than four years, figures last week showed.

“As manufacturing rebounds -- and new orders have continued to look pretty good for the manufacturing sector --it does indicate that the recovery has legs,” Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit, said before the report. “This year we should hit that magical self- sustaining pace of economic growth.”


Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aJIraD0uBPfw&pos=1

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Added internal title, as the title is different from the hot link at www.bloomberg.com to the article header. So, I included both. If the internal title should be the subject, please let me know.

So yeah, fastest business expansion since July 1988 and talk of a manufacturing rebound. Also, another reference to a self-sustaining recovery. 2011 looks like it will be much improved over the majority of 2010.

[Enrique]

1. much improved for investors maybe n/t

[decidedlyso]

2. If it is true, exactly. However, I trust no government or quasi-government

statistics.

[dmallind]

4. Luckily this is neither

It is a group of purchasing and supply chain managers.

Since buying more from manufacturers means manufacturers must make more, is that also not good for those who work for them or want to?

[Godhumor]

6. Manufacturing improvements means jobs

If the trend holds true, and it looks as if it will, then the much derided manufacturing sector will be hiring actual people (here in America) again. The caveat, as always, is that employment is a lagging indicator and can take up to 6 months to reflect changes in actual activity.

[Enrique]

7. so i've heard

:shrug:

[rug]

3. I can't wait for the trickle.

[Godhumor]

5. Manufacturing rebound will mean manufacturing jobs

Trickle or not, this is very good news--especially considering the pace being talked about in the OP.

[rug]

11. Not becessarily. The growing companies can plant their jobs over the border.

[dmallind]

12. The survvey separates US and overseas buying - the number is US. nt

[mikekohr]

8. Graphs on Current Progress & Historical Comparison and Perspective

?

?

?

FDR inherited the historic standard of economic failure. With a little historical perspective it becomes
clear that President Obama has mirrored the economic accomplishments of President Roosevelt as far as these
differing scenarios allow for comparison.
FDR had critics on the right and on the left, and his administration like President Obama's was not perfect, but
then nothing touched by human hands ever is. The key sentence in the above time-line and link http://www.huppi.com/kangaroo/Timeline.htm is under 1934,
"A long road to recovery begins." And the adjective "long," is the key word in that key sentence.

If we want to avoid the drawn-out, agonizing pain of economic recovery we have to quit electing the people, whose economic policies have been in place when 9 of the last 10 recessions began: Republicans.
http://bureaucountydems.blogspot.com/p/history-of-recessions.html

[CLANG]

9. BREAKING on FAUX: "We never heard of this - it may be an Obama Plot"

[bluestateguy]

10. I think Q4 GDP for 2010 will be revised upward a bit

nt

[fascisthunter]

13. surrre