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The eBearing News
September 6, 2004
U.S. Manufacturing Continues Rebound
copyright © 2004 eBearing Inc.
The U.S. Commerce Department reported factory orders rose again in July 2004, up 1.3% after growing
1.2% in June. March's 5% jump was the largest since 1999.
Order backlogs also increased, to 1.2% from 0.6% in June, a predictor of continued strength across the
overall manufacturing sector through the remainder of 2004.
The strength in factory orders was paced by demand for commercial aircraft, up over 100%. Excluding
transportation equipment, factory orders were up 0.5% in July, following a 0.6% rise in June.
Through the first seven months of 2004, factory orders are up almost 12% over 2003.
Separately, the Institute for Supply Management's closely-watched Report on Business -- index of
manufacturing activity -- slowed in August, to 59 from July's 62. This was the Index's 15th consecutive
month over 50. An index over 50 generally indicates the manufacturing sector of the economy is
growing, while below 50 indicates contraction. When it is above 42.8, it generally indicates overall
economic growth, and overall economic contraction below 42.8.
The ISM's new order index dropped to 61.2 in July from 64.7 in June. However, both could likely be
effects of seasonality, along with side effects of weakening demand for larger vehicles as oil prices rise.
It is the 15th consecutive month the new orders index has been above 50.
Norbert Ore, the ISM's survey coordinator, said, "The rate of growth in the manufacturing sector decelerated
during August, but overall the sector is still quite positive as both new orders and production remain at
high levels. August's PMI at 59 percent represents the end of a period of nine consecutive months when the
PMI was at 60 percent or higher."
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- by Bruce A. Carr
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Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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