The Chicago Business Barometer rose 5.7 points to a one year high of 66.2 in October
Fueled by a double digit gain in new orders, the bounce back of the barometer marks a solid start to the fourth quarter and suggests that against a backdrop of concerns about weakening growth in Europe and China, the US economy is still growing firmly.
- New Orders was the strongest component of the Barometer.
- Production also strengthened further, following a sharp decline the previous month.
- Employment increased
- Level of inventories eased from a 41 year high in September but they remain firm and point to a continued build in line with strong sales.
On Tuesday the Institute for Supply Management issued its October report on business:
Economic activity in the manufacturing sector expanded in October for the 17th consecutive month and the overall economy grew for the 65th consecutive month. The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey.
The October PMI registered 59 percent; an increase of 2.4 percentage points from September’s reading of 56.6, indicating continued expansion in manufacturing. The New Orders Index registered 65.8 percent, an increase of 5.8 percentage points from the 60 percent reading in September, indicating growth in new orders for the 17th consecutive month. The Production Index registered 64.8 percent, 0.2 percentage point above the September reading of 64.6 percent. The Employment Index grew for the 16th consecutive month. Inventories of raw materials registered 52.5 percent, an increase of 1.0 percentage point from the September reading. Comments from the panel generally cite positive business conditions, with growth in demand and production volumes.”
From the US Department of Commerce: Full Report on Manufacturers’ Shipments, Inventories and Orders for September 2014
- New Orders for manufactured durable goods in September, down two consecutive months, decreased 0.6 percent.
- Shipments of manufactured durable goods in September, up three of the last four months, increased 0.1 percent.
- Unfilled orders for manufactured durable goods in September, up seventeen of the last eighteen months, increased 0.3 percent.
- Inventories of manufactured durable goods in September, up twenty two of the last twenty three months, increased 0.2 percent.
US raw steel production dropped 1.1 percent last week
… as mills operated at an ACUR of 75.5 percent. In the corresponding week last year mills operated at an ACUR of 76.5 percent. On the year thus far mills have operated at an ACUR of 77.1 percent, up 0.4 percent from the same period last year.
US payrolls grew by 214,000 in October as the jobless rate drops to 5.8 percent, signs the labor market is strengthening.
As you all know, Republicans retained control of the House of Representatives and took control of the Senate in Tuesday’s mid-term elections.
Now that they have it, let’s hope they will do the right thing with the responsibilities now entrusted to them by the American people. I know passing legislation will be difficult with Obama in the White House, however it is imperative to create a cohesive policy agenda for conservative change in the country and get to work passing those laws whether they are stopped by presidential veto or not. At least show the American people you are attempting to do the right thing, to do positive things for the country and her citizens: Tax code reform; healthcare reform; the global terrorist threat; the education system; excessive regulations; a decimated defense department; the national debt; immigration law…reform and enforce, to name just a few.
And one more thing: on Thursday Night Football the Cleveland Browns whipped the Cincinnati Bengals by a score of 24-3. I have been a Browns fan seemingly since birth and aside from the privilege of having watched the likes of Jim Brown, Paul Warfield, Milt Plum, Frank Ryan, Gary Collins, Dick Schafrath, Lou Groza and others play the game, this was one of the most satisfying Browns victories on the gridiron that I have witnessed in many years. Woof Woof! Here we go Brownies, here we go!!
Fast & Furious-providing weapons to criminals leading to a loss of American life. No one held accountable. The president was unaware.
The loss of 4 American lives at our embassy in Benghazi, Libya. No one held accountable. The president was unaware.
The IRS targeting conservative political groups for tax-exempt status. No one held accountable. The president was unaware.
The National Security Administration eavesdropping on the phone calls of American citizens. No one held accountable. The president was unaware.
The software program created for the Affordable Healthcare Act, at a cost of $1 billion (thus far) and 3 ½ years to “perfect”, has been unusable to the American people. No one held accountable. The president was unaware.
Spying on our Allies, specifically Angela Merkel of Germany. No one held accountable. The president was unaware. (Although these things go on knowingly between countries all the time, the fact that our president denies knowledge of this is just another sign of his incompetence as the leader of the most powerful country on the planet).
“If you like your current insurance plan you can keep it. Period” Barack Obama
“If you like your doctor, you can keep him. Period” Barack Obama
Have a great weekend and….
Hug your children and grandchildren, tell them you love them.
Buy American made products whenever you can.
Hire a Veteran: they are patriots, honest, hard working, disciplined, loyal…. and …. They need and deserve our support.
God Bless America