The rebound in manufacturing is gaining momentum, the report showed. The new orders index rose to a seven-year high. A measure of order backlogs rose to its highest level in a year. And inventories are shrinking, both at manufacturers and their customers. All are signs that factory output is likely to keep growing.
"The recovery in the sector is both robust and on track," said Ian Shepherdson, an economist at High Frequency Economics.
Solid growth overseas, particularly in developing countries such as China, Brazil and India, has also helped by boosting exports. A measure of export orders rose to its highest level in more than 22 years.
My comments: US recovery is starting to look real and like it is gaining momentum. They should be nearing the economic high mark of mid-2008 soon, and breakng into new territory.
They've got a lot of major industrial corporations seeing heavy orders coming in from the developing world. Deere, GM, Ford, Boeing, CAT, GE. And internal companies who were putting off upgrades and replacements are now coming in with big time orders. (which creates a virtuous cycle).
Tech is very stong right now too.. Intel, Microsoft, Oracle, HP, IBM, Dell, Apple.
QE 2.0 is working too, big end demand comes in, US dollar devalues to a more approriate level, and so far no inflation.
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