Some Good Economic Signs Amid DC Turmoil

Washington, DC, July 25, 2011 -- Amid all the gloom in Washington about raising the debt limit, there were a few positive economic indicators last week.

For example, manufacturing activity in the mid-Atlantic region recovered in July from its contraction in June, said Chad Moutray, chief economist for the National Association of Manufacturers.

He noted that while new orders did not grow, they stopped shrinking, and there were improvements on the measures for delivery times, inventories and employment. Pricing pressures also eased somewhat, even though they remain elevated, he said.

"The survey found reasons for optimism, with expectations for the next six months rising for new orders, shipments, capital expenditures and employment," Moutray said.

Also, housing starts jumped 14.6 percent in June to an annualized 629,000 units being constructed.

"Housing starts have exceeded 600,000 units before (as recently as January) only to fall back," Moutray said. "It will be important to see if we are beginning a slow rebound to this long-depressed sector."