Tuesday, September 15, 2009

Empire manufacturing pushes ahead

Goods producers continues to rebound as evidenced by the latest survey of regional manufacturing.  The Empire Manufacturing Index, which looks at conditions in New York, increased 7 points in September to 18.9, the best reading since late 2007. 

A level of zero marks the line between expansion and contraction.

General Business Conditions

Looking ahead, the future indexes were generally positive and near last month’s levels. The future general business conditions index rose 4 points, to 52.3, a level last reached in 2004.

Coupled with today’s robust retail sales figure, the economy appears poised to post positive numbers in 3Q.  And manufacturing may be looking more at a V-shaped recovery as companies replace depleted stockpiles.

But it will take a more concerted effort by shell-shocked consumers if what appears to be shaping up as a fairly upbeat recovery in manufacturing continues into next year or moderates.

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