Jobs? ✔ Economy Growing? ✔ Thank You, President Obama

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Loraine Woellert: Factory Production Rebounds As U.S. Sustains Expansion

Production at American factories rebounded, claims for jobless benefits fell to a 14-year low and households held the most optimistic views in two years, signs the world’s largest economy is overcoming a global slowdown. Manufacturing output climbed 0.5 percent in September, springing back from a 0.5 percent drop the prior month, as factories pushed out more computers, appliances and building-supplies, according to Federal Reserve data issued today in Washington. Other reports showed the momentum is being sustained as the fewest workers since April 2000 filed applications for unemployment insurance last week and more consumers said this month that the economy will get better.

The reports bolster forecasts that the U.S. expansion will survive the weakening in Europe and emerging nations that has roiled global financial markets. American consumer spending, which accounts for almost 70 percent of the economy, is likely to strengthen as employment keeps growing and confidence climbs. Ford Motor Co. is among those automakers that remain upbeat. The second-biggest U.S. carmaker is adding workers at its Dearborn, Michigan, plant as it prepares for its new aluminum-bodied F-150 pickup. The truck is scheduled to arrive in showrooms by the end of the year. “These new jobs will help meet anticipated customer demand,” said Joe Hinrichs, Ford’s president of the Americas, during an Oct. 13 announcement. The company has hired more than 23,000 employees since 2011.

More here

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Industrial output in the U.S. increases by the most since November 2012: http://t.co/Uc5z10lhFn

— Bloomberg (@business) October 16, 2014

‘factory production is starting to rev back up’

AP: Factory orders are picking up and the economy may soon follow.

A rise in demand for long-lasting manufactured goods in May suggests the parts shortage stemming from the Japan crises is fading. It would also support the view offered by many economists, who have suggested that the economic slowdown is temporary and that growth will strengthen this summer after six dismal months.

Still, the projected growth won’t be enough to make a noticeable dent in the unemployment rate, which was 9.1 percent last month.

….Economists have largely blamed the sluggish stretch on high gas prices, which have come down since peaking in early May. They have also cited the impact of the March 11th earthquake and tsunami in Japan, which has led to supply disruptions that have hampered U.S. manufacturers.

Factory production is starting to rev back up. Durable goods orders rose 1.9 percent, the Commerce Department said. Companies stepped up requests for machinery, computers and cars, and a key category that measures future business investment rose.

It was a solid turnaround after orders fell 2.7 percent in April, at the height of the parts shortage.

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that auto bailout? a disaster! (well, for those who opposed it)

Bloomberg: General Motors, Ford and Chrysler reported sales gains in December that topped analysts’ estimates as demand for the automakers’ new models increased.

GM’s deliveries in the month rose 7.5 percent to 224,185 … the largest U.S. automaker was expected to post a 4.3 percent sales increase, the average of four analysts’ estimates compiled by Bloomberg. Ford’s sales gained 3.5 percent, topping the 3.3 percent average estimate of five analysts.

“This is a market that’s coming back significantly,” said Rebecca Lindland, an analyst with IHS Automotive. “And with really strong products coming from GM, Ford and Chrysler, there’s a lot of opportunity for change in the marketplace.”

….Rising consumer confidence and retail spending bode well for car sales and may help boost 2011 industrywide sales …. Banks are starting to lend more freely, giving buyers with weaker credit an opportunity to purchase new cars…

Full article here

From November – MSNBC: A GM success story? The biggest political story that few are talking about right now? GM’s initial public stock offering … looks like it’s going to be a big success and a case where the government may just make money on this deal. This has the potential of being a very good story for the Obama White House, as well as a success of government intervention. Where would the unemployment rate be in Michigan, Indiana, Illinois, Wisconsin and Ohio if GM not gotten major government assistance?

Meanwhile ….. Bloomberg: American factories unexpectedly received more orders in November, signaling that gains in consumer spending, business investment and exports will sustain the manufacturing recovery.

….Manufacturing has been resilient throughout the recovery as factories are seeing demand improve, pointing to further growth in 2011 … it expanded in December at the fastest pace in seven months…

….Bookings for capital goods, a measure of future business investment, rose 2.6 percent … demand for computers and electronics climbed 6.3 percent, the most since February 2009.

….Rising exports, which reached a two-year high in October, and improving consumer spending has prompted some companies to boost production to meet demand and also increase their own orders to replace aging equipment.

Full article here