US Manufacturing Hits Six Month High, Stocks Soar
The December 2011 Manufacturing Institute for Supply Management (ISM) Report on Business was issued yesterday, and it reported the greatest expansive high in six months within the U.S. manufacturing sector. The ISM’s index of national factory activity increased from November’s 52.7, to 53.9 in December. Big news for the industry, as the last significant growth boom within the manufacturing sector had not occurred since this past June. The positive increase has translated to major relief for the U.S. stock market. The DOW Jones Industrial Average rallied 148 points today, the S&P 500 climbed 19.3 points, and the Nasdaq increased by 53.2 points, as confident buyers rushed to Wall Street hoping to participate in the newly rekindling economy.
Economists gleaned great confidence from the report, as they were relieved to see a growth in overall orders, which are unanimously understood as the greatest indicator of future economic success. Out of all the manufacturing industries, nine saw significant growth including the Apparel, Leather & Allied, Text Mills and Petroleum industries to name a few.
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Another great boost to the industry’s morale is the industry’s amplified hiring within factories, which promises to put many Americans back to work. However, some experts attribute this hiring spree to lowered wages, which make hiring back old employees and new ones more affordable than in previous years.
Yet all in all the news is good for American industry, as we find our manufacturing legs again within a global economy which is eager to expand.