Author Topic: Manufacturing at Highest Level in Two Decades (Read 2799 times)

Holden McGroin · « **on:** December 02, 2003, 12:26:32 PM »

Quote

Manufacturing at Highest Level in Two Decades
By EDMUND L. ANDREWS and FLOYD NORRIS

Published in NYTimes: December 2, 2003

WASHINGTON, Dec. 1 — American manufacturing activity rose to its highest level in nearly 20 years last month as factories raced to keep up with demand and indicated a readiness to expand their work forces for the first time in three years, according to a survey published on Monday.

In the latest good economic news, the Institute of Supply Management reported that its November survey of purchasing managers showed a surge in new orders and a big jump in production in almost every industry. The institute said its overall index of manufacturing activity climbed to the highest level since December 1983, an increase much greater than most economists expected.

But the bigger surprise was that manufacturers showed a wider readiness to hire workers after three years of reducing factory payrolls.

Major stock indexes rose yesterday to the highest levels in 18 months, with the Dow Jones industrial average rising 1.19 percent as investors became more convinced that the robust economic growth this summer was more than a one-time event.

Speaking at a fund-raising event in Dearborn, Mich., President Bush said his strategy of lower taxes had helped revive the economy.

"Our economy was strong and it is getting stronger," Mr. Bush said. "Productivity is high; business investment is strong; housing construction is strong. The tax relief we passed is working."

"The Bush economic plan is wrong... it must be... " -the thoughts and hopes of Howard Dean

Intresting that the economy is greatly on its own and the President's policy has little to do with it, whoever the President may be. But they still get the blame or the credit.

miko2d · « **Reply #1 on:** December 02, 2003, 12:40:45 PM »

Intresting that the economy is greatly on its own and the President's policy has little to do with it...

Usually it is not the president but the Federal Reserve that controls the business cycle through monetary policy.
In this specific case the huge fiscal injections of the 2nd quarter - tax cuts plus spending increases - could have been the trigger for the 3rd quarter growth in economic activity.

"The Bush economic plan is wrong... it must be... " -the thoughts and hopes of Howard Dean

With 3-4% growth the Fed must have expected to hold the recovery going for a few years - at least past the 2004 election. With rates above 7-8% it may be forced to raise interest rates and induce recession or face inflation before elections.

miko

FUNKED1 · « **Reply #2 on:** December 02, 2003, 12:45:06 PM »

Yeah this whole money based economy thing will never work out. Back to Barter in '04!

muckmaw · « **Reply #3 on:** December 02, 2003, 12:55:10 PM »

I'm thinking about buying gold. Anyone have any thoughts?

AKS\/\/ulfe · « **Reply #4 on:** December 02, 2003, 01:11:56 PM »

I think our currency should be hotdogs, they'd be worth roughly a nickel.

-SW

MrLars · « **Reply #5 on:** December 02, 2003, 02:41:55 PM »

Quote

Originally posted by muckmaw
I'm thinking about buying gold. Anyone have any thoughts?

Gold is up to $404/oz today....over the weekend I heard some money guys say that the possibility of the US returning to the gold standard is close to becoming a reality...predictions say that would drive up the price of gold to above 1k/oz.

I've been investing in gold since GWB got 'elected'...just as a hedge against his 'economic policies'.

Y'all should look into it too

kappa · « **Reply #6 on:** December 02, 2003, 03:06:43 PM »

lol the highest level of production in 20yrs?? Was that measured over a 2 day interval? I guess that goes right along with the highest unemployment in 20yrs.. Kinda funny how it can be both!

k
AoM

muckmaw · « **Reply #7 on:** December 02, 2003, 03:07:48 PM »

It must suck to be a Bush hater these days...

First the Baghdad visit, now this.

Toad · « **Reply #8 on:** December 02, 2003, 03:20:23 PM »

This is really BAD news.

There'll be some folks along to explain that in a short while.

miko2d · « **Reply #9 on:** December 02, 2003, 03:34:18 PM »

It may be good news or it may be bad news but the number itself does not say anything. A growth is only good if it's sustainable and production is only good if the output finds demand, rather than liquidated in bankrupcy proceedings.

Rejoicing at a number - be it 8.2% or 4% is the same as rejoicing at the car engine burning fuel at higher rate.

Yes, it means the car is going faster but that is only good if there is enough fuel to last the trip at such burn rate and if the car is going in the right direction. Otherwise at some point part of the cargo would have to be dumped overboard in order for the car to reach the refueling station.

If the projects being expanded are malinvestments, like many of those in the previous boom, then the resources would be vasted and real growth would be revised to lower number.

Net foreign investment fell to $4.2 Billion in September... In August, the figure stood at $49 billion... And in July, it stood at $73 billion.

The foreign investment in U.S. Treasuries fell to $5 billion in September from August's $25 billion. The average monthly figure for the last 12 months as been around $40 billion. Any way you cut this data, it all says the same thing - the U.S. is finding it difficult to finance their Current Account Deficit, which means only one thing - the dollar must fall further.

miko

ygsmilo · « **Reply #10 on:** December 02, 2003, 03:37:57 PM »

Quote

Originally posted by miko2d
, which means only one thing - The dollar must fall further.

miko

Which is a good thaing.....

in my business.

Rude · « **Reply #11 on:** December 02, 2003, 03:59:10 PM »

Quote

Originally posted by kappa
lol the highest level of production in 20yrs?? Was that measured over a 2 day interval? I guess that goes right along with the highest unemployment in 20yrs.. Kinda funny how it can be both!

k
AoM

Yeah...it sucks things are gettin better don't it!!!

Pathetic

kappa · « **Reply #12 on:** December 03, 2003, 07:47:13 AM »

Quote

Originally posted by Rude
Yeah...it sucks things are gettin better don't it!!!

Pathetic

Pathetic rude?? Obviously your one to recognize pathetic....

What is pathetic, however, is the fact that the present economic agenda supporters have to grasp at anything they can find that might possibly draw a brighter picture on this record high defecit/debt our country has incurred under our leader's policies..

God, myself, and the entire country hope it gets better Rude... Dont be such a self rightous asss..............

k
AoM

Raubvogel · « **Reply #13 on:** December 03, 2003, 07:57:29 AM »

Quote

Originally posted by AKS\/\/ulfe
I think our currency should be hotdogs, they'd be worth roughly a nickel.

-SW

Will Ferrell doing Harry Carey, has to be one of the greatest comedy pieces EVAR!

Mini D · « **Reply #14 on:** December 03, 2003, 08:03:59 AM »

Quote

Originally posted by kappa
Pathetic rude?? Obviously your one to recognize pathetic....

What is pathetic, however, is the fact that the present economic agenda supporters have to grasp at anything they can find that might possibly draw a brighter picture on this record high defecit/debt our country has incurred under our leader's policies..

God, myself, and the entire country hope it gets better Rude... Dont be such a self rightous asss..............

k
AoM

Had to quote that one kappa. A gem of glaring stupidity such as this doesn't come around ever day. Calling rude self-righteous only adds icing to the cake.

MiniD