…Another predicts more growth

“With machinery orders increasing in two of the past three months, this sector is showing a stable path to growth with demand picking up,” said David Huether, chief economist for the National Association of Manufacturers.

07/26/2007


The National Association of Manufacturers pointed to Thursday’s Commerce Department report that new orders for durable manufactured goods increased 1.6% in June as the first evidence industry’s second quarter expansion will continue into the third.
“Not only are the doldrums of last year’s stagnant growth behind us, but the economy is building up momentum that should translate into faster growth in the second half of the year,” said David Huether, chief economist for the NAM. “Stable increases in production are coming from a variety of sectors.”
The June increases were the fourth in the past five months and the single largest monthly jump in the second quarter. It was led by a 28.7% surge in new orders for non-defense aircraft, followed by more modest increases in fabricated metals, machinery and electrical equipment.
“With machinery orders increasing in two of the past three months, this sector is showing a stable path to growth with demand picking up,” Huether said. The sector rose 2.6% in June.
“While orders for motor vehicles, computers and primary metals declined in June, each of these sectors has experienced very strong growth in the past quarter,” he said. “A short-term correction in these areas is not a concern at the moment.”





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