Most Economic Reports Last Week Were Positive

Washington, DC, Feb. 23, 2010--Last week's eight economic reports were virtually all positive, with seven of the eight indicators increasing, according to Dave Huether, chief economist for the National Association of Manufacturers.

The lone negative report, a rise in new unemployment claims for the week of Feb. 13, was likely caused by a temporary event, Huether said.

Three of last week's reports involved the manufacturing sector. The Federal Reserve reported that factory production surged 1 percent in January. This was the fifth strong increase in the past seven months following 18 months of nearly constant declines.

While the manufacturing sector is clearly at the beginning stages of recovery, Huether said, it is important to note that major contributors to growth (inventory rebuilding and fiscal stimuli, such as bonus depreciation, Cash for Clunkers and the first time homebuyer tax credit) either have ended or will continue for only a few more months.

Huether noted that the upturn in exports will likely prove durable, but the x-factors in the recovery include the labor market, consumer spending and business investment.