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Purveyor's JournalManufacturing in U.S. Expands at Fastest Pace in Two Years
Source: Bloomberg
Manufacturing in the U.S. expanded at the fastest pace in more than two years as orders and production jumped, indicating more factories were growing optimistic about the second half of the year.
The Institute for Supply Management’s factory index increased to 55.4, the strongest since June 2011 and exceeding the highest projection in a Bloomberg survey of economists, after 50.9 in the prior month, the Tempe, Arizona-based group’s report showed today. Readings above 50 indicate expansion, and the median forecast of 84 economists surveyed by Bloomberg called for an advance to 52.
Sustained demand for automobiles and for materials tied to the recovery in housing are keeping assembly lines busy even as global markets struggle to improve. Manufacturing, which accounts for about 12 percent of the economy, may also find relief in the second half of the year as the headwinds associated with cuts in the federal budget and higher income taxes dissipate.
“Fiscal drag was quite sizeable in the first half of the year, and that drag is starting to fade a little bit,” Jim O’Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York, said before the report. “Consumer demand should be picking up, and the backdrop here is the still improving labor market.”
Read more: http://www.businessweek.com/news/2013-08-01/manufacturing-in-u-dot-s-dot-expanded-more-than-forecast-in-july
GM Sales Climb 16% In July; Ford, Chrysler Up 11%
Source: USA TODAY
Detroit's Big 3 automakers saw a strong sales performance in July.
General Motors, the largest of the three, saw a 16% sales gain. Ford and Chrysler are both reporting 11% sales gains for July, making it one of the best performing months in years.
Here's are the details for each:
General Motors
General Motors' 16% gain was even stronger when sales to individual customers are taken into account. They were up 23%.Each of GM's four brands posted double-digit increases in sales to individual customers, the sales that matter the most.
Pickup sales were especially strong, up 51%, and crossovers were up 18%.
But car sale did almost as well, up 42% increase in small and compact cars. The stars were the smallest cars in the lineup, the Chevrolet Spark, up 32, and the Cruze, which set a sales record.
Read more: http://www.usatoday.com/story/money/cars/2013/08/01/chrysler-july-sales-released/2606273/
Consumer Comfort in U.S. Rises to Five-Year High on Economy View
By Alexandria Baca - Aug 1, 2013
Consumer confidence climbed last week to the highest level in more than five years as Americans became less pessimistic about the economy.
The Bloomberg Consumer Comfort Index rose to minus 27 in the period ended July 28, the strongest reading since January 2008, from minus 27.3 a week earlier. The margin of error for the headline figure is 3 percentage points. Measures of personal finances and buying climate were also little changed.
Rising residential property values and sustained gains in the labor market have helped improve consumers’ sentiment, which may spur greater spending in the second half of 2013. The figures signaled households are looking past rising borrowing costs as the expansion continues and gasoline prices at the pump retreat from four-month highs.
“Sustainable, albeit modest growth in the labor market and the economy likely bolstered consumer spirits,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “The key to sustained improvement is acceleration in hiring and an improved wage environment, something that has been a significant challenge during the current business cycle.”
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http://www.bloomberg.com/news/2013-08-01/consumer-comfort-in-u-s-rises-to-five-year-high-on-economy-view.html
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