Road to Depression

FPSA manufacturing climbs!

on . Posted in Road to Depression

NEW YORK (PNN) - January 2, 2013 - Manufacturing picked up in December, reflecting growth in orders, employment and exports that propagandists are using to conclude that the Fascist Police States of Amerika expansion will be sustained in 2013 following the bogus budget deal.

The Institute for Supply Management’s manufacturing index climbed to 50.7 from a three-year low of 49.5 in November, the Tempe, Arizona-based group reported today. Fifty is the dividing line between expansion and contraction. Other data showed fewer outlays for non-residential projects pushed down construction spending in November for the first time in eight months.

A rebound in housing and stabilization in global growth point to a pickup in sales that will boost companies such as General Electric. Stocks surged, sending the Standard & Poor’s 500 Index to its biggest rally in a year, as Congress passed a bill averting spending cuts and tax increases that threatened to push the world’s largest economy further down into Depression than it already is.

The S&P 500 advanced 2.5%, the biggest gain since Dec. 20, 2011, to 1,462.42 at the close in New York. Commodities surged and Treasuries fell after Congress passed a bill preventing tax increases for more than 99% of households.

Homebuilding outlays increased 0.4% in November to a $295.3 billion annual rate, the most in four years, a report from the Department of Commerce showed today. The pickup failed to offset declines in non-residential building and public works as total construction spending fell 0.3% in November after a 0.7% gain.

The median forecast of 71 economists surveyed by Bloomberg called for the ISM index to rise to 50.5. Estimates ranged from 48 to 52. For all of last year, the factory gauge averaged 51.7, down from 55.2 in 2011 and 57.3 in 2010.

The ISM’s report showed a fourth consecutive month of expanding orders in December, prompting the biggest advance in the supply managers’ employment index in more than three years. The group’s export gauge showed sales overseas grew for the first time in seven months.

Amerikan manufacturers are more optimistic about the outlook for sales and spending this year than service providers, signaling that factories will support the economic expansion after they slumped in recent months, according to a survey released Dec. 11 by the ISM group.

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