Leading Indicators Signal Upward Momentum for U.S. Economy
FEATURE
The U.S. economic recovery is in its 31st month and leading indicators signal upward momentum well into 2013, according the Specialty Tools & Fasteners Distributors Association September economic forecast.
The Economic Report prepared for STAFDA by ITR Economics, notes U.S. industrial production was at its highest level in over three years and 4.2% above a year ago.
“Industrial production activity in the past three months grew 4.6% from the same period one year ago, indicating the annual trend will maintain an upward trajectory in early 2013.”
TR pointed to the July Purchasing Managers Index, which indicated “a slight contraction in the U.S. manufacturing sector. This serves as an early confirmation of our expectation of a softening U.S. economy in mid-2013.”
• European and Brazil’s economic problems “are not dragging significantly on the U.S. economy. The overall rising trend in the S&P 500, low interest rates and a strong U.S. dollar will promote investment in the U.S. economy into 2013.
• However, European market signals “suggest the poor economic climate will persist through the remainder of 2012.”
“The sagging euro is helping to offset weak domestic demand for EU businesses as products become cheaper in export markets.”
• China economic growth is at its slowest rate in more than two years, “raising investor concerns in the commodities sector.”
For information on STAFDA’s 36th annual convention – November 4-6, 2012 in Orlando: stafda.org ©2012 GlobalFastenerNews.com
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