The Economic Advisor

Good News For U.S Economy And Factories

You don’t hear that much good news anymore so that’s why I’m doing this post.  I know everyone says manufacturing in the U.S. has been dead for years, but maybe were on the brink of a comeback.

Think about it – most factories have more robots now and less people.  It makes the labor advantages of 3rd world counties less attractive.  Check out what I found in business week:

Manufacturing in the Philadelphia area unexpectedly expanded in October at the fastest pace in six months, signaling factories are helping support a U.S. economy weighed down by weakness in the housing and labor markets.

The Federal Reserve Bank of Philadelphia’s general economic index increased to 8.7 from minus 17.5 last month, the biggest one-month rebound in 31 years. Readings greater than zero indicate expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware.

Companies such as hydraulic equipment-maker Parker Hannifin Corp. are raising sales forecasts as they benefit from rising business investment and overseas demand. Other reports today showed purchases of existing homes declined and Americans’ confidence in the economic outlook slumped with unemployment stuck near 9 percent and wages stagnant.

“Manufacturing continues to play a prominent role because of the exporters,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina. “There are orders there and the economy is improving. The problem we have is that we’re moving into an expansion phase at a pace that’s far below what an expansion usually is.”

The median forecast in a Bloomberg News survey of economists for the factory gauge was minus 9.4. Estimates from ranged from minus 16.5 to 1.

 

See the Original Story here