Posted on 01/24/2021 10:14:28 AM PST by E. Pluribus Unum
WASHINGTON—U.S. manufacturing activity surged to its highest level in nearly 14 years in early January, but bottlenecks in the supply chain caused by the COVID-19 pandemic are driving up prices and signaling a rise in inflation in the months ahead.
Other data on Jan. 22 showed an unexpected increase in sales of previously owned homes in December. Manufacturing and the housing market are helping to anchor the economy, which is being battered by a wave of coronavirus infections. But the pandemic is causing labor shortages at construction sites and factories, which could erode some of the strength in the manufacturing and housing sectors.
Data firm IHS Markit said its flash U.S. manufacturing PMI accelerated to a reading of 59.1 in the first half of this month, the highest since May 2007, from 57.1 in December.
Economists had forecast the index would slip to 56.5 in early January. A reading above 50 indicates growth in manufacturing, which accounts for 11.9 percent of the U.S. economy. Manufacturing is being supported by businesses rebuilding inventories and a shift in demand towards goods from services because of the pandemic.
The IHS Markit survey’s measure of new orders received by factories raced to its highest level since September 2014. The surge in demand reflected both existing and new customers, “with some clients reportedly committing to orders previously placed on hold.” That led to manufacturers hiring more workers early this month. The survey’s factory employment index increased to 54.8 from 52.2 in December.
But the pandemic is gumming up the supply chain, resulting in manufacturers paying more for materials, and they are passing on the higher production costs to consumers. The survey’s gauge of prices received by factories vaulted to its highest level since July 2008.
(Excerpt) Read more at theepochtimes.com ...
Biden administration takes credit in 3... 2...
Too bad the commander in thief will manage to squelch this.
Some leftover “Trump fertilizer” will help the economy. But the Marxist tax policies will end it sooner rather than later
“It’s another Biden Miracle!”
Kiss it good-bye.
Reagan’s tax cuts (81/86)benefited Clinton even though Clinton raised them, right? Could Biden benefit? My guy at the exchange says to stay right where we’re at-money wise. Something about the vaccine.
I doubt Biden will benefit. He doesn’t exactly inspire me to go spend money.
6 months. The prior administration economic policies last about 6 months in the next administration.
Give it till next July..
Meantime, fuel/energy prices will start creeping up more by next month. They already are on the upswing.
It will come crashing down in 3....2....1.
And democrats are convinced that Trump left Biden with a recession just like Bush left Obama! They are such idiots but that’s good for us I suppose.
The Housing market boomed in this area only after Trump became President. During the Obama years it was stagnate with many subdivisions incomplete and being shut down.
Bidenvilles coming to a town near you, soon.
It ends in 3,2,1
Home sales are on fire because so many people are trying to leave the cities.
IF you can ‘work from home” commuting then becomes moot. You can have a job in Silicon Valley & live in RENO.
Sobwhy ar lumber prices so dang high and sheet goods in the stratosphere.
Why in hell would someone be trying to escape the big cities, and then go to a big city like Reno?
What I see happening, are most bailing out to rural or much smaller and safer towns/cities.
Reno’s not that big. Most people with any assets live in suburban areas with half acre or more lots.
Yes, Reno is just a quaint small town with little or no crime!
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