State of Manufacturing Base Is Cause for Concern

National Defense Magazine ^ | 02-01-04 | Lawrence P. Farrell Jr.

[Jorge]

An adios to manufacturing heads up.....

Really?

U.S. Economy: ISM Manufacturing Index Rises to Two-Decade High
Bloomberg ^ | 02/02/04 | Bloomberg

"U.S. Economy: ISM Manufacturing Index Rises to Two-Decade High Feb. 2 (Bloomberg) -- An index of U.S. manufacturing rose to a two-decade high in January as factories boosted production to replace depleted inventories and meet improving demand."

"The Institute for Supply Management's factory index last month increased to 63.6, the highest since 1983, from 63.4 in December. It's the eighth straight month the index has been greater than 50, signaling expansion. Construction spending rose in December for a seventh straight month and consumer purchases rose, separate Commerce Department reports showed."

"The pace of growth in the last six months of 2003 was the strongest in almost two decades, causing inventories to drop to record lows. Reduced stockpiles and rising sales suggest that factories will ramp up production."

"Economists had expected a reading of 64 in the factory index, based on the median of 57 forecasts in a Bloomberg News survey. U.S. Treasuries fell in New York, with the benchmark 4 1/4 percent note due in November 2013 falling 1/16, pushing up the yield a basis point to 4.14 percent at 10:38 a.m."

"The January reading was the highest since 69.9 in December 1983. The Tempe, Arizona-based, group surveys more than 400 companies in 20 industries, including clothing, printing, transportation, furniture and plastics. Manufacturing accounts for about one-seventh of the economy."

"The new orders index, which accounts for about a third of the total, slipped to 71.1 from 73.1 in December. The production index, a gauge of work being performed, also rose to 71.1, the highest since 80.6 in December 1983, from 69.2."

[lainde]

Thanks for a great article! Free trade afficiandos sometimes lack common sense and survival instincts!

[NMC EXP]

Define ISM Manufacturing Index.

Regards

J.R.

[Jorge]

The definition is in the article.