Manufacturing Is HotMay 01, 2012 | Comments : 3 Recommended this article: (0)
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We finally got some good news on the U.S. economy today as the manufacturing ISM index unexpectedly rose to 54.8 in April from 53.4 in March.
It was the fastest pace of growth in 10 months and easily beat the forecast which was calling for a small decline to 53. Of the 18 manufacturing industries in the index, 16 reported growth in April.
Many were expecting a worse number given weakness in several of the regional ISM surveys the past few days but those turned out to be false signals.
Employment Index At 8-Month High
There were encouraging signs in the sub indexes including new orders which jumped to 58.2 from 54.4. The employment index also rose to 57.3 from 56.1. It is the 31st consecutive month of improvement in the employment index. It is now at an 8-month high.
The manufacturing index is closely watched, especially in the heartland. Even though manufacturing is only about 10% of the U.S. economy, growth in manufacturing has been fueling optimism in the broader economy.
Could the manufacturing sector be signaling a much strong employment report on Friday?
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