Some Economic Indicators Showing Improvement

Washington, DC, Oct. 25, 2011 -- While much of the world is focused on Europe's economic issues, last week's numbers showed economic improvement domestically, especially for manufacturing.

While challenges persist, according to Chad Moutray, chief economist for the National Association of Manufacturers, much of the economic news last week was hopeful.

He noted that the Federal Reserve Board's Beige Book cited improving conditions for manufacturers across various regions, with some exceptions for specific sectors.

He also said the Conference Board's Index of Leading Indicators rose for the fifth straight month, as manufacturing production rose 0.4 percent in September.

In another good sign, the Philadelphia Federal Reserve Bank's manufacturing survey shifted from a decidedly downbeat contraction in activity in August and September to modest growth in October.

"Even among persistent worries, there are glimmers of potential optimism," Moutray said.

"In New York, the Empire State Manufacturing Survey showed that its businesses remain anxious about current conditions, with its general business index showing contracting activity overall. Yet the respondents to this survey indicated higher levels of new orders, shipments and employment – an encouraging sign that these numbers might turn around in coming months. Likewise, the housing sector continues to be a drag on economic activity, with falling existing home sales and still-depressed measures overall. Nonetheless, housing starts jumped significantly from 572,000 in August to 658,000 new homes in September (at annual rates), largely on an uptick in multi-family construction."

On the downside, Moutray said that pricing pressures, which have been a problem for manufacturers for much of the past year, refuse to go away.