U.S. Factories Strong, Construction Slips

[papau]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=3&u=/nm/20040802/bs_nm/economy_dc

U.S. Factories Strong, Construction Slips



By Ros Krasny

CHICAGO (Reuters) - U.S. manufacturing expanded further in July, fueling more hiring, but outlays for U.S. construction fell unexpectedly in June to hint at a slowing of the housing boom, reports released on Monday showed.

The Institute for Supply Management's national factory index, which rose to 62.0 in July from 61.1 in June, suggested that a "soft patch" in the U.S. economy in June might have been the blip that Federal Reserve officials have suspected and not a change in direction (this 14 months above 50, and 9 months above 60, is the longest stretch of rapid growth in more than 30 years - if you believe the numbers). That should keep the central bank on track to continue raising interest rates.<snip>

Outlays for U.S. construction fell in June by 0.3 percent, the first drop in 16 months, the Commerce Department (news - web sites) said. Analysts had looked for no change from May levels. <snip>


May's spending was revised down to a 0.1 percent gain from a previously reported 0.3 percent advance.
<snip>

[Tempest]

1. Still not enough

To make up for the decline in consumer spending in the last quarter.

Has the Consumer Train Reached the Station?
http://www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=132709

[mhr]

2. Labor Utilization At Only 60% or So

So if labor was a factory, that is like having 40% slack capacity.

Seems like hardly a sterling situation.

[robcon]

4. That data is not capacity utilization, mhr

It is an index of manufacturing, with 1997 as 100.

Capacity utilization was 75.3% in the second quarter.

It was 82.0% in 2000.

http://research.stlouisfed.org/fred2/series/CUMFN/3

[mhr]

7. I Know, I Always Append The Texas Metro Graph To Show

How bad things are here.

There are fewer people employed in Dallas today than at the beginning of 2000.

[whistle]

3. Time for another massive tax cut to the wealthiest 20%....

...of American tax payers. As for the manufacturing index, how much of that is military arms build up?

[htuttle]

5. "US Factories strong"

Shouldn't that read 'Factory' not 'Factories'?

[blindpig]

6. not around here

we're still closing textile mills. Now, if we had something to sell the DoD......