Implications: Manufacturing continues to lead the V-shaped recovery. Since the low in June 2009, manufacturing production is up at an 8.8% annual rate, which is faster growth than even during the tech boom of the late 1990s. We expect rapid gains in production to continue. First, inventory-to-sales ratios are at rock-bottom record lows in both the retail and wholesale sectors. This means production has room to run higher than the pace of sales as companies try to re-stock shelves that are too bare. Second, although up 18% versus last year, the pace of auto sales is still significantly below what's needed to keep up with scrappage rates and the rise in the driving-age population. In other recent news on the factory sector, the Empire State Index, a measure of manufacturing in New York, increased to 19.6 in June from 19.1 in May, indicating a mild acceleration in already rapidly growing activity in June.
Click here to view the entire report.
|
|
Posted on Wednesday, June 16, 2010 @ 11:05 AM
|