MID-ATLANTIC FACTORIES POWER AHEAD IN DECEMBER

Forbes ^ | 18 December 2003

[MeneMeneTekelUpharsin]

NEW YORK, Dec 18 (Reuters) - Manufacturing in the U.S. mid-Atlantic region surged powerfully and unexpectedly in December as new orders jumped to a 23-year high, in one of the clearest signs yet that factories have emerged from a two-year slump. The Philadelphia Federal Reserve Bank said on Thursday its monthly gauge of regional industry jumped to 32.1 in December from 25.9 in November, confounding economists' forecasts for a slight fall to 25.4.

New orders, a harbinger of future growth, surged 21 points to 41.8 in December from 20.8 in November, while employment, which has so far lagged the recovery in production, showed its first solid rise, soaring to 21.9 from 3.3 last month. The report is one of the first readings on U.S. manufacturing each month and is closely watched for hints on the overall health of factories, which account for about one-sixth of economic activity. The Philadelphia Fed is one of 12 regional Fed banks and serves Delaware, eastern Pennsylvania and New Jersey.

[MeneMeneTekelUpharsin]

The economy seems to be improving beyond the expectations of many. With factory production surging, the demand for electricty is going to also increase. Marvelous news. Merry Christmas all.

[TheBigB]

TDIDS :)

[MeneMeneTekelUpharsin]

TDIDS :)

Initiate me...I fail to comprehend the above. LOL.

[1rudeboy]

we're doomed

[egarvue]

I'm not an economist. Does the lower value of the dollar help out our manufacturing sector? If any non-nutty-goldbug economist FReepers could answer this, I'd appreciate it.

[RWR8189]

TDIDS=

Tom Daschle is Deeply Saddened :(

[TheBigB]

That's it. :)

[RWR8189]

Does the lower value of the dollar help out our manufacturing sector?

Definitely, when the dollar is lower our goods are cheaper overseas, and imports cost us more here at home. So we'll be buying more American made goods, and so will foreigners.

[Cincinatus' Wife]

Bump!

[RWR8189]

I forgot to add to, that since the Chinese yuan and some other Asian currencies are pegged to the dollar, fluctuation in the exchange rates dont have as much of an effect.

What the weak dollar and strong euro is really doing is hampering recovery in Europe since their exports are more expensive to us and the rest of the world.

[Cobra64]

Manufacturing in the U.S. mid-Atlantic region surged powerfully and unexpectedly in December as new orders jumped to a 23-year high...

Tom Daschle, "I am saddened. Deeply saddened."

[UB355]

Paging Mr Green, Mr Willie Green.........

[norwaypinesavage]

Does the lower value of the dollar help out our manufacturing sector?

The low value of the dollar makes exports out of the US cheaper, and so it increases exports of US manufactured items. It also makes imports more expensive, so US manufactured goods sell better at home.

The bad news is that your vacations in France will cost more.

[MeneMeneTekelUpharsin]

Oh, okay. If the economic activity continues with the upsurge, we are going to see an increasing demand for electricty. That will make my investment in Mirant more viable...that's what counts. I think I can, I think I can...

[MonroeDNA]

Doom & Gloom Freepers are deeply saddened.

DGFRDS

[MeneMeneTekelUpharsin]

Doom & Gloom Freepers are deeply saddened.

Possibly. They are probably firm in their opinions, though. The data seems to support the above.