Manufacturing Growth: An Illusion of Monetary Stimulus

[marmar]

from minyanville:




Manufacturing Growth: An Illusion of Monetary Stimulus
By Jeff Harding Jul 08, 2011 8:00 am

The rise in manufacturing does not seem to be organic, but rather it's coming from a weaker dollar.


The following is a quick analysis of current data releases related to industrial production, both manufacturing and services. These numbers, especially manufacturing, are key indicators of the health of the economy.

The services industry, which accounts for about 90% of the US economy, continued to slide in June, according to the latest ISM report. The Index slipped 1.3 points to 53.3. Rather than spending a thousand words on this, here is the picture:



Since the Index peaked in March of this year, the last four months have declined.

On the manufacturing side, factory orders for May were more positive, but still not showing strong growth:

.............(more)

The complete piece is at: http://www.minyanville.com/businessmarkets/articles/manufacturing-growth-monetary-stimulus-industrial-production/7/8/2011/id/35603

[xchrom]

1. recommend

[dmallind]

2. That "decline" is merely slower growth

Strange not to point that out really.

I've never worked in anything but manufacturing. Where I am now has seen sales increase about 8% (I'm fully aware this survey is based on purchases, but they tend to increase together and I don't have spend numbers handy). All but a tiny fraction of our sales, maybe 3% tops, are domestic so a weaker dollar does nothing for us. Certainly helps exporters though like my previous employer that was about 35-40% int'l, and I am puzzled why this is dismissed. Don't we want to export more? Isn't it good to give Americans jobs making things for China?