Tuesday, June 23, 2009

Stat of the Day: Richmond Fed Manufacturing Up Again

For all the noise about whether the economy is recovering or not. Whether we're seeing actually good news or just less bad. The regional manufacturing report is actually seeing good news. The report for June came in at +6 which means they are actually experiencing growth. Heck, I didn't even catch that they reported growth in May as well since this isn't one of the major regionals followed. Accounting for 9% of the manufacturing base it covers the central Atlantic and includes states such as the Carolinas and Virgina.

This is much more then a 'green shoot'. This is actual recovery. Looking at the graph you actually can see a V shaped recovery which is exactly what most experts say isn't going to happen.

The main highlights are that new orders increased at a fast clip, employment improved dramatically especially the hours worked part, and backlogs were up for the first time since Aug 2007. Now we just need the other regions to join in the recovery.

Overview
Manufacturing activity in the central Atlantic region
advanced somewhat faster in June, according to
the Richmond Fed’s latest survey. Looking at the
main components of activity, new orders expanded
further, while factory shipments grew at a slightly
slower rate and employment exhibited more
moderate weakness. Other indicators were mostly
positive. Backlogs increased for the first time
since August 2007, while vendor delivery times
stabilized and capacity utilization edged higher. In
addition, manufacturers reported somewhat
quicker growth in finished goods inventories.


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