US Manufactering up for 17th month in a row

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Anita



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PostPosted: Thu Jan 06, 2011 5:46 am    Post subject: US Manufactering up for 17th month in a row Reply with quote

Manufacturers to rev up in 2011, sensing greater demand from consumers and businesses
WASHINGTON - Factories are cranking up production, anticipating greater spending by consumers and businesses in 2011. Tax cuts will give people more money to buy cars, computers and electronic goods, and provide incentives for businesses to invest in equipment.

Manufacturing activity has expanded in every month since the recession ended a year and a half ago. The big difference now is that the growth is being driven by higher sales and more confident consumers— not just businesses rebuilding the stockpiles that they slashed during the recession.

The Dow Jones industrial average closed up more than 93 points,

Companies are sitting on nearly $2 trillion in cash.

THIS IS A BIG DEAL>>>The tax package signed by President Barack Obama last month should encourage greater business investment, said Daniel Meckstroth, chief economist at Manufacturers' Alliance/MAPI. It includes a provision that will allow companies to write-off the entire cost of big-ticket purchases

BIG DEAL #2 >>Chinese authorities are struggling to keep prices in check by raising interest rates. It increased a key rate for the second time in three months on Dec. 25. China's inflation surged to 5.1 per cent in November, the highest in more than two years.

As part of its efforts to rein in higher prices, China may let its currency, the yuan, rise against the dollar this year. That would lower the price of imports, and would make U.S. exports cheaper in China, potentially boosting sales.

Exports should grow faster than imports in the U.S. this year. That's another switch from 2010, economists said, when rising imports were a drag on the U.S. economy. This year, the faster growth of exports should benefit manufacturing and the broader economy.
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