Manufacturing Sector Grows At Fastest Pace In More Than Two Years.
Reuters (12/3, Mutikani) reports that the Institute for Supply Management’s manufacturing index rose from 56.4 in October to 57.3 in November, its highest reading in two and a half years. A reading above 50.0 indicates that the sector is expanding. Economists had expected November’s reading to come in at 55.0. Reuters says that the numbers are the latest indication that the economy is gaining strength, which may encourage the Fed to begin tapering its bond-buying programs.
The AP (12/3, Rugaber) reports one component of the ISM index, a measure of hiring, increased “to its highest level in nearly 18 months.” Export orders also rose to its highest level in about two years.
Bloomberg News (12/3, Jamrisko) reports the increase in exports reflects “a rebound in the world economy that’s translating into more production and hiring.” Factories in the US are outpacing their competitors overseas, according to Bloomberg News. Deere & Co. and other companies “benefit from a domestic housing recovery that’s spurred demand for construction equipment, appliances and furniture.”
McClatchy (12/3, Lee) notes that while some economists see the “report as overstating the rebound in manufacturing; other measures of industrial production and sales have been less glowing.” However, most of the indicators show a generally improving trend for the manufacturing sector in the US, “which could give a good boost to U.S. economic and employment growth.”
Markit Final November Index Of Manufacturing Rose To 54.7. Reuters (12/3, Mutikani) reports the Markit Economics final November index of manufacturing rose to 54.7 from 51.8 in October, its highest reading since 2011. “The economy is moving forward at a moderate to strong pace,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ. “This is additional evidence that the economic outlook is positive enough and expected to continue long enough and that the Fed might actually taper in December.”
Bloomberg News (12/3, Jamrisko) also covers the story.
Midwest Manufacturing Grew In November. The Minneapolis Star Tribune (12/3, Depass) reports the Mid-America Business Conditions Index, showed a reading of 51.2 in November from 50 in October. The index, which measures manufacturing Kansas, Missouri and seven other states, “showed a big jump in employment and exports and a drop in inflationary pressures.”
The Kansas City (MO) Star (12/3, Rosen) also covers the story.
From Daily Executive Briefing 12/3/2013