Mike
08-03-2004, 12:17 AM
US factories enter longest stretch of rapid growth in 30 years
Mon Aug 2,11:53 AM ET
WASHINGTON (AFP) - The American manufacturing sector sped up activity in July, cementing the longest stretch of rapid growth in more than 30 years, a survey showed.
The Institute for Supply Management purchasing managers' index (PMI), based on a survey of supply executives, rose 0.9 point from June to 62.0 in July, in line with private economists' forecasts.
It was the 14th consecutive reading above 50 points, which indicates an expansion in activity.
"The manufacturing sector continues to grow at a rapid rate as the PMI has now been above 60 percent for nine consecutive months," survey chief Norbert Ore said in a statement.
"This is the longest period of growth above 60 percent since the 12-month period of July 1972 through June 1973," he said.
Key findings in the report showed:
-- New orders sped up, with the index rising 4.7 points from June to 64.7 in July.
-- Production accelerated, with the index up 2.9 to 66.1.
-- Employment grew, albeit at a slower rate, with the index easing 2.4 to 57.3.
-- Input prices rose at slower pace, with the index falling 4.0 points to 77.0.
"Today's ISM report provides further verification of the strong state of US manufacturing," said Manufacturers Alliance/MAPI president and chief executive Thomas Duesterberg.
"Overall economic growth in the second half of 2004 will be fueled by strong business equipment investment, purchases of high technology durable goods, and robust exports," he said.
"Leadership is now passing from the consumer and the government to the industrial economy, which bodes well for continued strength in manufacturing jobs and productivity."
The report added to signs that Corporate America is taking over the economic leadership from consumers, who buckled in June under high fuel prices, rising interest rates and the waning impact of tax cuts.
A government report Friday showed the economy slowed sharply in the second quarter to a 3.0-percent annual growth pace from 4.5 percent in the first quarter as consumer spending rose just 1.0 percent.
In the same period, business investment jumped 8.9 percent in the second quarter, up from 4.2 percent in the first. Spending on equipment and software rose 10 percent, up from eight percent.
Many economists expect economic growth to speed up in the second half of the year as consumers bounce back despite an expectation of gently rising short-term interest rates.
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I cut out the political quotes at the end of the article due to the link mess that appeared in thereon the original post. Basically, Bushcited the strengthening economy due to tax cuts, while Kerry assailed him on deficits and so forth. In other words, more of the same.
Mon Aug 2,11:53 AM ET
WASHINGTON (AFP) - The American manufacturing sector sped up activity in July, cementing the longest stretch of rapid growth in more than 30 years, a survey showed.
The Institute for Supply Management purchasing managers' index (PMI), based on a survey of supply executives, rose 0.9 point from June to 62.0 in July, in line with private economists' forecasts.
It was the 14th consecutive reading above 50 points, which indicates an expansion in activity.
"The manufacturing sector continues to grow at a rapid rate as the PMI has now been above 60 percent for nine consecutive months," survey chief Norbert Ore said in a statement.
"This is the longest period of growth above 60 percent since the 12-month period of July 1972 through June 1973," he said.
Key findings in the report showed:
-- New orders sped up, with the index rising 4.7 points from June to 64.7 in July.
-- Production accelerated, with the index up 2.9 to 66.1.
-- Employment grew, albeit at a slower rate, with the index easing 2.4 to 57.3.
-- Input prices rose at slower pace, with the index falling 4.0 points to 77.0.
"Today's ISM report provides further verification of the strong state of US manufacturing," said Manufacturers Alliance/MAPI president and chief executive Thomas Duesterberg.
"Overall economic growth in the second half of 2004 will be fueled by strong business equipment investment, purchases of high technology durable goods, and robust exports," he said.
"Leadership is now passing from the consumer and the government to the industrial economy, which bodes well for continued strength in manufacturing jobs and productivity."
The report added to signs that Corporate America is taking over the economic leadership from consumers, who buckled in June under high fuel prices, rising interest rates and the waning impact of tax cuts.
A government report Friday showed the economy slowed sharply in the second quarter to a 3.0-percent annual growth pace from 4.5 percent in the first quarter as consumer spending rose just 1.0 percent.
In the same period, business investment jumped 8.9 percent in the second quarter, up from 4.2 percent in the first. Spending on equipment and software rose 10 percent, up from eight percent.
Many economists expect economic growth to speed up in the second half of the year as consumers bounce back despite an expectation of gently rising short-term interest rates.
-------
I cut out the political quotes at the end of the article due to the link mess that appeared in thereon the original post. Basically, Bushcited the strengthening economy due to tax cuts, while Kerry assailed him on deficits and so forth. In other words, more of the same.