Factory Growth Eases(more than expected), Construction Booms

[papau]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20040901/bs_nm/economy_dc

Factory Growth Eases, Construction Booms

By Amanda Cooper

NEW YORK (Reuters) - Expansion in the U.S. factory sector slowed in August as higher costs for energy and raw materials squeezed manufacturers, a report showed on Wednesday, but analysts said growth remained relatively robust.

The Institute for Supply Management said its index of national manufacturing activity fell to 59.0 in August from 62.0 in July, the lowest since October 2003, analysts said. <snip>

Analysts polled by Reuters had forecast a median reading of 60.0 in the headline figure. A reading above 50 signals growth. <snip>

A separate government report showed construction spending hit a record high in July, rising 0.4 percent, in line with expectations as low mortgage rates and short supply of homes fueled residential building. <snip>


http://quote.bloomberg.com/apps/news?pid=10000103&sid=aO1h2eBXqxkk&refer=news_index

U.S. August ISM Factory Index Probably Fell to 60: BN Survey

Sept. 1 (Bloomberg) -- U.S. manufacturing probably expanded for a 15th month in August as orders, production and hiring grew, economists said in advance of an industry report today.

A reading of 60 is forecast for the Institute for Supply Management's index of manufacturing last month, down from 62 in July, according to the median estimate of 73 economists surveyed by Bloomberg News. The index has been greater than 50, showing expansion, since June 2003 and has exceeded 60 since November.

Businesses are stepping up purchases of new equipment to take advantage of tax breaks expiring this year. Factories are having difficulty keeping up with the increased demand, causing order books to lengthen. The delays suggest companies will need to increase hiring and boost production to keep pace. <snip>

A provision in the tax law that President George W. Bush signed in May 2003 gave added incentive for capital equipment purchases until Dec. 31 of this year. Companies can deduct half of qualified investments in the first year, up from 30 percent.

Orders waiting to be filled at makers of durable goods such as machinery and computers swelled in July to the highest in three years, the Commerce Department reported last week. Investment in equipment and software rose at a 14 percent annualized pace in the second quarter, following an 8 percent rise the previous three months, revised figures on gross domestic product also showed. <snip>

Manufacturers added 10,000 workers to payrolls during July, accounting for a third of the total increase, figures last month from the Labor Department showed. August's report, due Friday, is expected to show 15,000 factory jobs among 150,000 payroll gains, according to the median estimate of economists surveyed.

[madrchsod]

1. 15000 jobs "gained"

15000 lost equals 0 growth. machinery-purchased from overseas and computers-foreign parts. new workers- temps and boost production-more forced overtime-no wage increases..it is a grand day for the workers in america.....

[papau]

2. And it has not happened yet - we wait for Fridays report!

I would bet on fewer jobs being in the actual report.