Growth in manufacturing activity accelerated last month in both the U.S. and China, defying mounting signs of a global slowdown and cheering investors. The Institute for Supply Management, which surveys U.S. purchasing managers, said Wednesday its manufacturing index rose to 56.3 in August from 55.5 the prior month. A parallel index in China clicked up to 51.7 from 51.2 in the same period, while indexes in Europe slid. Any reading over 50 indicates expansion.
Though many firms are waiting cautiously for clearer signs that the recovery won't falter, some are starting to bump up production. Analysts say; some of the strength likely came from improved performance in the auto industry. Many auto factories didn't scale back as much this summer as they normally do.
ReplyDeleteWhatever the reason this is good news not only for the U.S. economy but also the global economic recovery. These upbeat reports are also helping investment, and sent stocks surging Wednesday (today). The Dow Jones Industrial Average was up 231.82, or 2.31%, at 10246.54 in afternoon trading. Now, approaching market close, the Dow is at a +224.17, 2.22% increase around 10237.76. Decreased a little, nevertheless the market did well today.