Philadelphia-Area Manufacturing Unexpectedly Expands First Time in a Year

[Purveyor]

Source: Bloomberg

By Shobhana Chandra and Courtney Schlisserman

Aug. 20 (Bloomberg) -- Manufacturing in the Philadelphia region unexpectedly expanded in August for the first time in almost a year as factories help pull the economy out of its worst recession in seven decades.

The Federal Reserve Bank of Philadelphia’s general economic index climbed to 4.2 from minus 7.5 in July, the bank said today. Positive readings signal an expansion. The leading economic indicators rose in July for a fourth consecutive month, the Conference Board reported separately.

Factories are stepping up production after cutting inventories at a record pace, and the government’s cash-for- clunkers plan has prompted output gains at General Motors Co. and Ford Motor Co. that may ripple through the economy. An unexpected increase in jobless claims reported today indicates a weak labor market may hold back a rebound.

“This is all very consistent with a recovery in the economy,” said Joel Naroff, president of Naroff Economic Advisors Inc. in Holland, Pennsylvania. “Manufacturing is stabilizing right now.” At the same time, he said, “consumer spending is going to grow more slowly. It’s going to be a sluggish recovery.”

The Philadelphia index was forecast by economists to improve to minus 2, according to the median of 52 estimates in a Bloomberg News survey.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aX8uql8tRH2g

[DarthDem]

1. Okay, Now This Is Significant

I lived in Philly for over six years before moving out to CA in May. And if the state of Philadelphia manufacturing, of all things, is actually improving, then you can bet that there's a light at the end of the tunnel. Many local observers didn't think Philadelphia-area manufacturing would EVER come back.

Joe Sestak should jump on this news and spin it against Republicans and faux Republicans, like, say, ohhhhhhh, what's his name . . . .

[kooljerk666]

2. Jobs in Philly area!!!

I did call Joe Sestak & brought this to his attention. It looks like it may be good for beating up people who reduced the size of the stimulus bill (i.e. Specter).

Joes staff was glad to here about it.

I live in chester county outside of philly, & have not seen a job ad for my field (architectural designer) for over a year.

The jobs in the paper I am trying for this week is kennel worker or night shift at a crematorium, no I ain't kidding.

If I don't get the dog job, I will be handling dead bodies for 16$ hr & benefits.

Wish me luck!

I did notice a lot of new roofs going up & painting projects starting so I hope we turned a corner.

[cap]

3. join the sustainable business network in philly

progressive organization... will keep you informed of green jobs.

[willing dwarf]

4. Not to be too negative

But being unemployed in Philly....I've gotta say that it's not hard to measure an increase when the previous baseline was below zero (a recovery to minus two! was projected). I don't see that there's a sustainable recovery in our city at least not in manufacturing. There's lots of low end service jobs, lots of work through Universities and Colleges, lots of pharmaceuticals, but manufacturing? Not really.

But maybe I'm wrong. I know that a lot of my brothers and sisters in the inner city could really use jobs in manufacturing. For the good of all, it would be great to see a huge increase in green manufacturing, but I can't see it myself. Not yet.

[cap]

5. It's there but it is small...

where things are happening at a faster rate on the green jobs is in New Jersey