A Possible Play on Improved Manufacturing

Last week, we received a number of positive signs for the domestic economy, particularly the manufacturing economy. The Chicago Purchasing Managers' Index continued to be well above 50, which is the line of demarcation between expansion and contraction. The ISM Index for manufacturing not only remained above 50 in January, but new orders increased to 57.6 in January from 54.8 in December, and order backlogs returned rose in January to 52.5 from 48.0 in December. Total Light Vehicle sales continued their upward trend as well, with autos sales outpacing those for light trucks in January.

In addition to those favorable domestic data, China's Purchasing Managers' Index expanded slightly in January, suggesting that  the downturn in China manufacturing may be bottoming following several months of data that showed contraction. Factory output in India also grew for the second straight month, as measured by the HSBC India Manufacturing PMI. That index rose to 57.5 in January, up from 54.2 in December....604 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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