Things are perking up
Folks looks like the US economy is on the mend. Another encouraging factor. Economy
on Path for Sound Recovery, Data Show Fri May 31, 6:01 PM ET http://story.news.yahoo.com/news?tmp...m/economy_dc_3 WASHINGTON (Reuters) - U.S. manufacturing, which suffered the most during last year's recession, is on a firmer footing, reports on Friday showed, and combined with stunning productivity gains and better consumer sentiment, demonstrate the start of a sound economic recovery. "The recovery in the manufacturing sector means that the weakest part of the U.S. economy is now on the mend," said Mark Vitner, senior economist at Wachovia Securities. Four reports on Friday helped to reinforce views, flagging in recent days, that the Federal Reserve (news - web sites) might raise rates in August. The Fed is next due to discuss interest rates on June 25 and 26. Stocks climbed initially jumped on the news but then weakened as investors feared political conflict over the weekend, notably between India and Pakistan. The Dow Jones industrial average closed up 21 points. The dollar also gained strength from the data finishing the day around 0.9333 against the euro and at 124.28 yen. MANUFACTURING ON THE REBOUND Manufacturing in the Midwest jumped to a 3-year high in May, according to the National Association of Purchasing Management-Chicago. Its index surged to 60.8, the highest level since April 1999. Last month, the index came in at 54.7. The reading in May marked the fourth consecutive month above 50, which points to an expanding regional manufacturing economy. A reading below 50 signals contraction. "The recovery in the manufacturing sector means that weakest part of the U.S. economy is now on the mend," Vitner said. Meanwhile, the Commerce Department (news - web sites) said orders for U.S. manufactured items in April posted their biggest rise since October 2001, gaining a larger-than-expected 1.2 percent to $323.87 billion. That report also showed that business investment, closely watched by Fed policymakers because it is crucial for a sustained recovery, is on the mend. Orders for machinery rose 4.5 percent in the month, their biggest rise since March 2000 while orders for electrical equipment and appliances were up 9.6 percent. Demand for computer and electronic products was up 3.0 percent. "The third cylinder of the economic engine -- capital spending -- has really begun to fire and this is a signal of improving business confidence," said Sung Won Sohn, chief economist at Wells Fargo. PRODUCTIVITY SURGES There was other good news for the economy. A Labor Department (news - web sites) report showed productivity rocketed ahead in the first quarter, rising 8.4 percent as profit-seeking American businesses squeezed more out of their workers. This met expectations even though it was slightly below the previously reported 8.6 percent rise. "Rising productivity means that corporate profits are beginning to improve and that is a necessary precondition for an improvement in employment," said Vitner. The productivity report showed little evidence of inflation with unit labor costs, a closely watched gauge of wage pressure, dropping 5.2 percent. "These productivity numbers have important implications for the conduct of monetary policy and the performance of the economy," said David Resler, chief economist, Nomura Securities International. "They mean we can produce more and not have serious inflation problem come up." Consumers also are doing their bit to underpin the recovery. Another report showed sentiment rose in May to its highest level in 1-1/2 years as a steadily improving economy and a measure of calm in the Mideast helped lift consumers' assessment of the present and future hopes. The University of Michigan's final May consumer sentiment index rose to 96.9 from 93.0 in April, market sources said, beating expectations and slightly above the preliminary May reading of 96.0 released two weeks ago. "The fundamentals for consumer spending are pretty healthy, so consumer spending will be another economic stabilizer," said Sohn. |
Re: Things are perking up
http://story.news.yahoo.com/news?tmp...0531/bs_nm/ec-
onomy_purchasing_chicago_dc_2 Midwest Manufacturing Jumps Fri May 31,10:52 AM ET By Melissa Goldfine CHICAGO (Reuters) - U.S. manufacturing levels in the Midwest jumped to their highest peaks in more than three years, according to data released on Friday, signaling the U.S. recovery is gaining strength and that the Federal Reserve (news - web sites) could raise interest rates sooner than previously anticipated. The National Association of Purchasing Management-Chicago said its index surged to 60.8, the highest level since April 1999. Last month, the index came in at 54.7. The reading in May marked the fourth consecutive month above 50, which points to an expanding regional manufacturing economy. A reading below 50 signals contraction. "Across the board, this is a very strong report," said Christopher Low, chief economist at FTN Financial. "It certainly suggests that manufacturing is in terrific shape ... Even though this is only one report and it's regional, it does increase the odds that the Fed would go earlier rather than later." U.S. Treasuries sold off on the news of economic strength, slashing gains to sink into negative territory. Economists polled by Reuters had forecast the May index at 54.9. The index began to show signs of improvement in early 2002, with February marking the first time in 18 months the index was above 50. The employment component of the index rose to 47.3 after reaching 41.2 in April. Prices paid increased to 58.3, its highest level since March 2001, after posting a reading of 55.4 the prior month. NAPM-Chicago said that the production index posted the biggest gains since December 1995, coming in at 65.7, compared with 55.8 in April. Some economists believe the regional manufacturing number is a reliable forecaster of the national data from the Institute for Supply Management, formerly the National Association of Purchasing Management. The ISM data is due out on Monday, and economists polled by Reuters forecast the index to uptick to 54.1 in May from 53.9 in April. Some economists said they may raise their estimates for the national data after digesting the regional report. "I think the forecasts that we have right now are too low, and that it is highly probable that we could see a 60 print on the ISM for the overall index. All of sudden a Fed rate hike in June has become more likely," said Brian Wesbury, chief economist at Griffin, Kubik, Stephens & Thompson. The market has been debating how soon the Federal Reserve will raise interest rates from their current 40-year low. Currently, the market does not expect higher rates until August, at the earliest. Recent data has given a mixed picture of the true strength of the U.S. economic recovery. On Friday, first-quarter U.S. productivity grew at the fastest pace in almost 19 years but more slowly than previously reported. Separately, the University of Michigan sentiment index rose to 96.9 in May, compared with 93.0 in April. |
Re: Things are perking up
The trouble is this is a very fragile recovery. One too many rate hikes again by
Greenspan and it will all come tumbling back down, and the rate doesn't need to go as high as last time. Industry is scared stiff of spending involving interest bearing debt right now. Hike rates, and it's "stop spending" again. |
Re: Things are perking up
Canada's GDP up 1.5 per cent first quarter on hot housing market, factory rebound Fri
May 31,12:11 PM ET OTTAWA - Canada's economy grew by 1.5 per cent in the first three months of this year — six per cent at an annualized rate — propelled by a strong housing market and a rebound in exports and manufacturing, Statistics Canada reported Friday. The pace of growth in gross domestic product was more than double that of the previous quarter, and was the fastest since the fourth quarter of 1999. However, the statistics agency noted that economic activity paused late in the quarter, as GDP (news - web sites) leveled off in March. Statistics Canada said domestic demand was driven by housing investment and by robust consumer spending, but business investment in plant and equipment edged down. Spending on new housing surged 10.5 per cent to an all-time high in the first quarter, breaking the record level of the late-1980s housing boom. The manufacturing sector reversed five quarters of decline, led by makers of information and communications technology and transportation equipment as well as chemical and wood products. On a year-over-year basis in inflation-adjusted terms, Canada's economy was 2.1 per cent larger in the first quarter than in the same quarter of 2001. |
Re: Things are perking up
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Monday June 3, 10:16 am Eastern Time Press Release SOURCE: Computershare Trust Company of Canada Major investment prompts expansion for Computershare Document Services TORONTO, June 3 /CNW/ - A multi-million dollar expansion by Computershare Document Services, a division of Computershare Trust Company of Canada (Computershare Canada), into the Canadian marketplace will create as many as 100 jobs within three years according to David Hynes, President of Computershare Document Services. The company's ambitious growth strategy stems from today's opening of a state-of-the-art, 32,000 square foot print facility in Richmond Hill, north of Toronto, Ontario. The $3.5-million facility already employs 40 people, including information architects, designers, copywriters, programmers, operations and client service staff. The new facility currently handles the design, electronic printing and mailing tasks for Computershare Canada, the largest Canadian stock transfer agent. The Computershare Document Services facility, which has a capacity to print 5 million documents per month, anticipates 50 percent of future demand to come from its ability to deliver a wide range of strategic document services such as document programming, intelligent mailing and communication design. "Many Canadian companies now consider each piece of customer mail as both a brand-building exercise and cost-saving opportunity," said Hynes. "As such, Computershare Document Services offers clients the best thinking in marketing, design as well as business processes. By doing so, we help them improve the quality of product, service delivery and timeliness; minimize call centre inquiries through the production of effective documents; and create consistent and professional products that serve their overall business objectives." These strategic document services are only made possible through Computershare Document Services' ability to leverage the most advanced print and mail equipment, according to Hynes. For example, all mail devices at the facility "are intelligent and have full integrity" which enables clients to customize each mail piece to reflect the specific interests of individual customers. "The cornerstone of success is largely based on how well companies communicate with their customers. Our know-how, whether it's in marketing, design or business processes along with Computershare Document Services' technological capabilities, help our clients maximize the value of each customer contact and, in turn, build long-term and profitable relationships with them." Hynes cited Computershare Document Services' aggressive expansion into Canada as a result of changing conditions in the marketplace. For example, the company anticipates a strong demand for strategic document services from Ontario's energy sector, as companies need to rethink the way they manage customer relationships in a competitive environment. "The Canadian marketplace is ripe with growth opportunities. We will build upon our strong presence by leveraging our expertise and capitalizing on this dynamic economy," said Hynes. The international arm of Computershare Document Services, operating through various international divisions or entities, handles the design, printing and mailing tasks for the global Computershare group. With facilities in the United States, Canada, Australia and the UK, more than 350 employees service the paper and electronic document needs for Computershare's clients, while also offering its service capabilities across the financial, insurance, energy, and telecommunications industries. Computershare Trust Company of Canada is a leading provider of transfer agency services, employee plans and trustee services to the Canadian securities industry. Computershare is a subsidiary of Computershare Ltd. (ASX: CPU), a leading financial services and technology services provider for the global securities industry, providing services and solutions to listed companies, investors, employees, exchanges and other financial institutions. Computershare is the largest and only global share registry, managing in excess of 68 million shareholder accounts for over 7,500 corporations in ten countries on five continents, and it provides sophisticated trading technology to financial markets in each major time zone. Founded in Australia, Computershare today employs more than 5,000 people worldwide and is an Australia Stock Exchange Top 100 company. For further information Sandra Huard, Marketing and Communications, Computershare Trust Company of Canada (416) 263-9293 Stephen Hewitt, NATIONAL Public Relations, (416) 586-0180 |
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