Last Week's Economic News Mostly Upbeat

Washington, DC, Dec. 20, 2010 -- Last week's economic indicators again were largely positive, according to chief economist Dave Huether of the National Association of Manufacturers.

Of the 11 major reports that came out last week, seven accelerated, three grew more slowly and one remained unchanged.

"Last week's Federal Reserve report on November manufacturing production is a hopeful sign that after decelerating over the past few months, the manufacturing recovery may be starting to accelerate," Huether said.

"Production in 10 of the 19 major manufacturing industries grew by more than 1 percent in November — up from six in October and the highest number since April. At the same time, only four industries posted declining output last month -- the lowest number since March." 

He said much of the strength in manufacturing was concentrated in durable goods, ranging from metals and machinery to computers and electronics. This indicates that manufacturers are experiencing rising demand from both exports and the domestic market as businesses continue to modernize facilities. It is also a hopeful sign, he noted, that production of wood products, whose biggest customer is the construction sector, grew in excess of 1% for the second consecutive month in November.

"This shows that the housing market may be improving from the slowdown that took place in the wake of the expiration of the homebuyer tax credit earlier in the year," Huether said.