Orders to U.S. Factories Climb Most in More Than Four Years

[Godhumor]

Source: Bloomberg

Orders to U.S. factories climbed in January by the most in more than four years as demand for commercial aircraft rebounded after slumping the previous month.

Bookings for manufacturers’ goods increased 3.1 percent, the most since September 2006, after a revised 1.4 percent gain in December that was larger than previously estimated, figures from the Commerce Department showed today in Washington. Orders excluding transportation equipment also advanced, propelled by a jump in demand for non-durable goods that may reflect higher commodity prices.

Companies including General Motors Co. and Deere & Co. are benefiting from improving demand in the U.S. and abroad, which may prompt further gains in factory employment. The Federal Reserve this week said “solid growth” at manufacturers led to stronger labor market conditions in several regions.

“The manufacturing sector is quite strong,” said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh. “We have a good increase in orders, a very good increase in shipments, and even inventories are showing some rise.”


Read more: http://noir.bloomberg.com/apps/news?pid=20601068&sid=avOjxpvYi9_I

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And yet more news that shows, oddly enough, US manufacturing is on the leading edge of the recovery. Glad to see it.

[dotymed]

1. The manufacturing sector is quite strong,” said Stuart Hoffman

Really? Need I say more?

[Godhumor]

2. Actually, manufacturing has been leading the economic recovery for some time

The article even touches (very briefly) on it in the concluding paragraph. But this news isn't particular shocking, as manufacturing reports have been overwhelmingly positive news for almost half a year.

[OnlinePoker]

7. Not Really

Less than 200,000 of the increase in employment in the last year has come from manufacturing. By contrast, Education and Health Services and Business and Professional Services have both gone up over 400,000.

http://www.bls.gov/news.release/empsit.t17.htm

[Godhumor]

8. Economic recovery not just employment recovery

Manufacturing, as a sector, has seen increases in orders, orders fulfilled, shipping, etc. over the past half year at a rate substantially higher that most other sectors that are seen as leading indicators of economic status. Moreso than in many industries, manufacturing has a pretty unusual employment model where cuts tend to happen quickly after downturns and take longer to come back (That good ol' productivity ratio again.). So good economic news will lead to a rash of new hiring in the sector, but jobs certainly are lagging.

[OnlinePoker]

10. At least the bleeding has stopped

I just hope it's not because the patient is dead.

[Godhumor]

12. Well, growth has not stagnated, which is a good vital sign

Don't think we've flat-lined yet, heh.

[Vinee]

3. well, that should be really good for corporate profits

[Godhumor]

4. Are you actually implying an increase in manufacturing is a bad thing?

That's a unique view...

[Vinee]

5. No, I'm implying that this doesn't necessarily translate into increased manufacturing jobs..

It will be good for wall street. main street though? we'll see. I'm pretty much sick of seeing wall street boom while main street collapses.

[Godhumor]

11. Thanks for the clarification.

I spoke about it in a different post, but manufacturing has a pretty unique job profile. We'll have to see how this plays out.

[valerief]

6. In what country are the US factories located? nt

[Godhumor]

9. The US. Tracking is based on geographic location within the US

n/t

[WatsonT]

13. Good to know

hope it's sustainable.

[valerief]

14. So it's all in the Mariana Islands, I imagine. nt