New Manufacturing Orders Surge in Texas

Factories should be humming in Texas based on the latest manufacturing outlook survey from the Dallas Fed. In January, the new orders index spiked to 14.4 from 1.3 in December. The shipments index also grew sharply, from barely over zero to 9.2.

“Growth in auto sales, lower energy prices and the relatively low value of the U.S. dollar are leading many tire manufacturing companies to move production to the U.S., displacing their own imported tire shipments,” said one upbeat chemical manufacturer. “We are hearing that there are more profits to be made by producing and selling in the U.S. than exporting to the U.S.”

The production index also edged up in the state, from 6 to 7.1, while capacity utilization held steady at 8.2.

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Texas employers reported an uptick in hiring, though 72% continued to report no change in their workforce size. The hours worked index returned from negative territory in December to 3.4 in January.

The raw materials price index fell to 26.8 in January but the bank noted it remains high compared to most of last year. And 43% of the manufacturers polled said they anticipate more price increases over the next six months.

Texas manufacturers continue to hold a rosy view of the economy. The future general business activity index remains positive at 22.3 and the index of future company outlook rose to 33.5, its highest level in three years.

But manufacturers are still wary of the impact of the Affordable Health Care Act and other regulatory activity. “We are extremely concerned with the increasing costs of compliance and regulations that are adding to our overhead and therefore reducing our margins,” said one manufacturer. “We are trying to pass the cost to our customers but that can be difficult in a ‘quoting for every job’ environment.”

From Industry Week by Steve Minter in The Global Manufacturer

Increased Investment in U.S. Manufacturing

U.S. manufacturing has been on the upswing for a little while now, and there are finally enough signs of positive trends that industry experts are hopeful for the industry’s long-term prospects. Investment in American factories has grown, spurring corporate investment and a turnaround in hiring.

American manufacturing companies are expected to increase their spending on equipment by 7 percent in 2014, up to a total of about $211 billion according to this article published online by The Wall Street Journal. The article cites a few cases of companies investing hundreds of millions of dollars into factory facilities in Alabama, Louisiana and North Carolina. Some of this investment is even coming from foreign companies, bringing money into the country instead of the other way around.

Employment levels within manufacturing industries are still at a level below what U.S. manufacturers enjoyed in 2007, before the country’s recession. However, since reaching its lowest point in 2010, total jobs in American manufacturing increased by 5 percent to about 12 million jobs. As investment in U.S. manufacturing facilities improves, we’ll need even more workers to fill the positions at those companies as well.

The United States currently endures a pretty massive trade deficit between foreign imports and domestic exports, indicating that it’s spending more than it’s producing. However, that gap also tightened up by $6 billion over the past year. That’s a pretty small piece of the total pie, but it is an encouraging sign that American manufacturing is exporting more than in recent years.

There are still a few issues confronting our country’s manufacturing goals that we may need to address before returning to prosperity. Many areas of our country are experiencing a shortage of skilled workers, and our businesses deal with higher taxes than in other countries. Still, the comparatively flat wages earned by our workers, as well as reduced energy costs within our country, has been encouraging far more investment in our economy.

Marshall Fabrication Machinery is on hand whenever you need metalworking machinery to handle your manufacturing jobs. From plate rolls to angle rolls and more, we provide the top quality in factory and machining equipment that your business deserves.

Gain in U.S. Consumer Confidence Lifts Spending Outlook: Economy

American consumers turned more confident in December as hiring picked up, brightening the outlook for spending heading into 2014.

The Conference Board said its sentimentindex climbed to 78.1 from 72 in November, exceeding the median forecast of economists surveyed by Bloomberg and the strongest year-end reading since 2007. Other reports showed home prices climbed at the fastest pace in more than seven years and manufacturing was in a sustained expansion. The biggest employment gain in eight years, the rebound in housing and record stock values are boosting household wealth, which will help support spending in the new year. Companies from Ford Motor Co. (F)to Apple Inc. (AAPL) are pledging to expand operations in the U.S. as demand improves, a sign the world’s biggest economy will strengthen in 2014.

“We’re ending 2013 with good momentum,” said Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, and the second-best forecaster of consumer confidence over the past two years, according to data compiled by Bloomberg. “We’ve seen progress in the labor market. The rise in home values along with the run-up in equity prices is a big element of why people are feeling better.”

U.S. stocks rose, with the Standard & Poor’s 500 Index poised for its biggest annual advance since 1997, as data showed an improving economy. The S&P 500 climbed 0.3 percent to 1,846.72 at 12:13 p.m. in New York.

Home Values

Another report today showed home prices in 20 cities rose in October from a year ago by the most since February 2006, signaling the real-estate rebound will keep bolstering household wealth. The S&P/Case-Shiller index of property prices climbed 13.6 percent from October 2012 after a 13.3 percent increase in the year ended in September. A dwindling inventory of foreclosed properties has helped restrict the supply of homes for sale, pushing up prices even as higher mortgage rate cool demand. The real-estate market will probably get its next boost from gains in employment.

“There’s certainly room for home prices to continue rising in the coming year,” said Dana Saporta, an economist at Credit Suisse in New York, who projected a 13.7 percent advance in prices in the year ended in October. “As home prices continue to rise, more and more homeowners who are underwater on their mortgages will see their financial situations improving. Just getting out of that underwater position should be a big help to the economy.”

Survey results

The median projection in a Bloomberg survey of 59 economists called for the consumer confidence index to climb to 76. The Conference Board, a New York-based research group, today also revised up the November reading from a previously reported 70.4. The index averaged 53.7 in the recession that ended in June 2009.

The group’s present conditions barometer increased to 76.2, the highest reading since April 2008. Consumers’ assessments of current labor-market conditions also improved. The share of respondents who said positions were hard to get dropped this month to the lowest level since September 2008. Payrolls expanded by 203,000 workers in November after a 200,000 gain in October, and the jobless rate fell to a five-year low of 7 percent, according to Labor Department data. Employment is forecast to increase about 190,000 this month, which would make 2013 the best year since 2005. The improvement in the economy and labor market helps explain why the Federal Reserve on Dec. 18 decided it will trim monthly bond purchases to $75 billion from $85 billion starting in January.

Expectations Brighten

The Conference Board’s gauge of consumer expectations for the next six months jumped to 79.4, the highest since September, from 71.1 a month earlier. The proportion of Americans who said jobs would become more plentiful in the next six months rose to a four-month high. “Despite the many challenges throughout 2013, consumers are in better spirits today than when the year began,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. The gain tracked advances in other confidence measures. The Bloomberg Consumer Comfort (COMFCOMF) Index jumped to a four-month high for the week ended Dec. 22. The Thomson Reuters/University of Michigan index climbed in December to a five-month high. Automakers are among companies benefiting from growing confidence. Auto sales advanced to a 16.3 million annualized rate in November, the highest since May 2007, according to data from Ward’s Automotive Group.

Adding Jobs

Dearborn, Michigan-based Ford said this month it plans to add 5,000 jobs in the U.S. as it introduces 16 new vehicles in 2014.

“We also expect manufacturing, engineering and spending related costs in North America to increase next year due to the 2014 launches as well as for products and capacity actions that will be launched in later periods,” Chief Financial Officer Robert L. Shanks said in a Dec. 18 guidance call. He said the company “is, has been, and continues to be in growth mode.”

Cupertino, California-based Apple started taking orders this month for the new Mac Pro personal computer, which is being built in Texas with components made domestically as part of Chief Executive Officer Tim Cook’s $100 million Made-in-the-USA push. Improving sales are prompting factories to boost output, giving the U.S. economy another boost. Business activity expanded in December, capping the strongest three months in more than two years, another report showed today.

Sustained Growth

While the MNI Chicago Report business barometer declined to 59.1 from 63 in November, numbers greater than 50 signal growth. The index averaged 62.7 over the past three months, the highest since the period ended May 2011. Manufacturing, which makes up about 12 percent of the economy, has been expanding as demand for automobiles, construction materials and appliances keep factory assembly lines humming. A pickup in business investment and economic improvement overseas would help sustain gains and support growth into the new year.

“Some of the missing pieces for a stronger economic recovery are falling into place,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “The consumer’s still going to have to do some of the heavy lifting, particularly early on in the year until the housing cycle kicks in and business investment ramps up.”

To contact the reporter on this story: Shobhana Chandra in Washington atschandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

Manufacturing to give economy a fresh push into 2014

WASHINGTON (MarketWatch) — Manufacturers likely ended 2013 by posting a seventh month of growth, which probably will help fuel a pickup in the broad economy and hiring in the new year, economists say.

This week’s data may also signal continued gains for housing and a rebound in confidence among consumers, the backbone of the U.S. economy. A series of good reports, following recent strong data on business spending and housing, bode well for 2014, economists say.

“As we get ready to close the books on 2013, we’re not only hopeful but reasonably confident (i.e., as confident as one can be in the often humbling world of economic forecasting) that, yes, 2014 will be the year when the U.S. economy finally shifts into a higher gear,” Richard Moody, chief economist at Regions Financial, wrote in a research note.

The data highlight comes Thursday, when the Institute for Supply Management will report on manufacturing in December. Economists polled by Dow Jones Newswires expect the data to show a solid expansion at 56.7%, but slightly pulled back from the 2.5-year high of 57.3% in November . Results above 50% signal growth, and the higher the reading, the faster the growth.

“That would still leave the index at a level normally consistent with strong growth in manufacturing output and employment,” Capital Economics analysts wrote in a research note.

Also Thursday, Markit will release its gauge of U.S. manufacturing. Both reports come two days after a report about Chicago-area business activity. A series of good manufacturing reports could mean that gross domestic product this quarter is stronger than economists are currently forecasting.

Housing on the rebound

The week also brings reports on housing sales, prices and construction.

On Monday, the National Association of Realtors will report on pending sales of homes for November. Economists expect the gauge to rise 1%, after declining 0.6% in October , according to a poll by Dow Jones Newswires. An increase in pending sales — these typically close within two months and can be used to estimate upcoming activity — would follow five months of slumps, when rising mortgage rates cut buying plans. But buyers now are becoming accustomed to higher mortgage rates and pricier properties, economists say.

On Tuesday, S&P/Case-Shiller will report on home prices, and economists expect that annual growth remained speedy, reaching 13.8% in October, up from 13.3% in September , according to Dow Jones Newswires. Low inventory and pent-up demand have been supporting escalating home prices. But eventually rising prices will slow down as more sellers become willing and able to place their homes on the market, increasing inventory.

On Thursday, the government will report on construction spending, and economists polled by MarketWatch expect monthly growth of 0.9% in November, led by new building for single-family homes, compared with 0.8% in October. A stronger housing market would reinforce broad economic growth, as owners and consumers feel more confident about spending. Labor-intensive construction of new homes also adds to growth.

“We expect further employment gains to improve household formation, a key determinant of housing demand,” UBS analysts wrote in a research note. “Combined with the lagged effects of quantitative easing on the willingness of banks to lend, these factors should allow for additional needed investment in housing, helping create the positive feedback loop that is key to a self-sustaining economic recovery.”

Consumers perking up

After weathering a government shutdown and partisan bickering over the federal budget, confidence among consumers is expected to rebound. Analysts track consumer confidence to get a feel for spending and clues about expectations for the labor market, among other topics. On Tuesday, the Conference Board will report its consumer-confidence index, and economists polled by MarketWatch expect the gauge to rise to 75 in December from 70.4 in November . Although holiday retail sales have been somewhat disappointing , overall consumer-spending growth picked up in November, according to the Commerce Department.

By Ruth Mantell, MarketWatch

November 2013 Manufacturing ISM Report On Business®

FOR RELEASE: December 2, 2013

Contact: Rose Marie Goupil
ISM, ROB Media Relations
Tempe, Arizona
800/888-6276, Ext. 3015
E-mail: rgoupil@ism.ws

 

PMI™ at 57.3%

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of November 2013.

New Orders, Production and Employment Growing
Inventories Growing
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in November for the sixth consecutive month, and the overall economy grew for the 54th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 57.3 percent, an increase of 0.9 percentage point from October’s reading of 56.4 percent. The PMI™ has increased progressively each month since June, with November’s reading reflecting the highest PMI™ in 2013. The New Orders Index increased in November by 3 percentage points to 63.6 percent, and the Production Index increased by 2 percentage points to 62.8 percent. The Employment Index registered 56.5 percent, an increase of 3.3 percentage points compared to October’s reading of 53.2 percent. This reflects the highest reading since April 2012 when the Employment Index registered 56.8 percent. With 15 of 18 manufacturing industries reporting growth in November relative to October, the positive growth trend characterizing the second half of 2013 is continuing.”

Of the 18 manufacturing industries, 15 are reporting growth in November in the following order: Plastics & Rubber Products; Textile Mills; Furniture & Related Products; Primary Metals; Food, Beverage & Tobacco Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Transportation Equipment; Chemical Products; Computer & Electronic Products; Nonmetallic Mineral Products; and Fabricated Metal Products. The three industries reporting contraction in November are: Apparel, Leather & Allied Products; Wood Products; and Machinery.

WHAT RESPONDENTS ARE SAYING …
  • “Seasonal demand has not decreased at the typical pace.” (Primary Metals)
  • “Incoming order rate remaining strong.” (Fabricated Metal Products)
  • “Outlook for the remainder of the year and into 2014 is trending positive.” (Chemical Products)
  • “Overall business climate is good. Business is steady.” (Transportation Equipment)
  • “Sequestration and cutbacks in defense spending continue to impact business.” (Computer & Electronic Products)
  • “Market continues to be stronger than normal for this time of year.” (Wood Products)
  • “Getting much busier toward the end of the year.” (Furniture & Related Products)
  • “Seeing consistent uptick in demand.” (Food, Beverage & Tobacco Products)
  • “Federal debt, deficit and inefficiency are causing a level of caution and uncertainty.” (Machinery)
  • “Ordering for 2014 seems to be increasing in comparison to the past six months.” (Miscellaneous Manufacturing)
MANUFACTURING AT A GLANCE
NOVEMBER 2013
Index Series
Index
Nov		 Series
Index
Oct		 Percentage
Point
Change		 Direction Rate
of
Change		 Trend*
(Months)
PMI™ 57.3 56.4 +0.9 Growing Faster 6
New Orders 63.6 60.6 +3.0 Growing Faster 6
Production 62.8 60.8 +2.0 Growing Faster 6
Employment 56.5 53.2 +3.3 Growing Faster 5
Supplier Deliveries 53.2 54.7 -1.5 Slowing Slower 5
Inventories 50.5 52.5 -2.0 Growing Slower 2
Customers’ Inventories 45.0 47.0 -2.0 Too Low Faster 24
Prices 52.5 55.5 -3.0 Increasing Slower 4
Backlog of Orders 54.0 51.5 +2.5 Growing Faster 2
Exports 59.5 57.0 +2.5 Growing Faster 12
Imports 55.0 55.5 -0.5 Growing Slower 10
OVERALL ECONOMY Growing Faster 54
Manufacturing Sector Growing Faster 6

*Number of months moving in current direction.

Click HERE for full report.

Americans’ Confidence at Four-Month High on Jobs: Economy

Consumer confidence climbed last week to a four-month high as an improving job market and holiday discounts put Americans in the mood to shop. The Bloomberg Consumer Comfort Index (SPX) rose to minus 27.4 in the period ended Dec. 22, the fifth straight gain, from minus 29.4. Other figures showed applications for unemployment benefits declined more than forecast last week to 338,000. The report on sentiment also showed a gauge of whether it’s a good time to make purchases advanced to the second-highest level since 2007, signaling a pickup in the spending that accounts for almost 70 percent of the economy. Americans stayed upbeat about economic prospects amid more job opportunities, higher home values and record stock prices. “Consumers are feeling a bit more buoyant heading into the new year,” said Omair Sharif, an economist at RBS Securities Inc. inStamford, Connecticut, who projected 340,000 claims. “This isn’t surprising, given better labor-market data and low inflation.Consumer spending is going to be pretty robust in the fourth quarter.”

The Labor Department said today in Washington that first-time claims for jobless benefits dropped by 42,000 in the week ended Dec. 21. The median projection in a Bloomberg survey called for 345,000 new applications. The figures, which followed a 75,000 increase in the previous two weeks combined, underscore the difficulty in smoothing out the fluctuations that typically occur during the year-end holidays, an agency official said as the report was released.

Stock Prices

Stocks climbed, extending an all-time high for the Standard & Poor’s 500 Index. The S&P 500 increased 0.5 percent to 1,842.02 at the close in New York. All three components of the weekly Bloomberg comfort index (COMFCOMF) — finances, views of the economy and the buying climate — improved last week, today’s report showed. “Consumer sentiment has made a round trip back to pre-government shutdown highs, largely due to modestly improved economic data, including job growth and stable gasoline prices,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. Consumers are less pessimistic about the outlook for the economy after lawmakers struck a deal last week that will ease the next round of spending cuts known as sequestration. The bill marked the first bipartisan budget produced by a divided Congress in 27 years. The buying-climate index jumped to minus 31.8, the highest since the week ended May 5, from minus 35.5.

Economy View

The gauge assessing Americans’ views on the current state of the economy rose to minus 56.8 from minus 56.9 the prior week. The measure of consumers’ views on their personal finances advanced to 6.4, the highest since early August, from 4.2. In a sign the job market is making progress, confidence among the unemployed improved to its highest level since January 2008, the report showed. Payrolls expanded by 203,000 workers in November after a 200,000 gain in October, according to the latest Labor Department figures. The jobless rate fell to a five-year low of 7 percent. Record stock prices are improving household finances and building confidence, particularly among upper-income Americans. Sentiment among those making more than $100,000 a year has averaged 12.4 so far in 2013, compared with a 0.9 average last year. For those making between $50,000 and $75,000, confidence is at its strongest since May. The S&P 500 Index has surged about 29 percent so far this year.

Housing Market

Momentum in the housing market may also be helping to sustain consumers’ spirits. Purchases of new homes exceeded projections in November, holding near a five-year high, and gains in building permit applications show demand will be sustained through the start of 2014.

New-home sales declined 2.1 percent to a 464,000 annualized pace, following a revised 474,000 rate in October that was the strongest since July 2008, figures from the Commerce Department showed earlier this week. The median forecast of 75 economists surveyed by Bloomberg called for 440,000. Building permits eased by 3.1 percent in November from the prior month to a 1.01 million rate, Commerce Department data showed last week. October’s 1.04 million level was the highest since June 2008. Homebuilders such as Los Angeles-based KB Home (KBH) see a rise in interest rates as a short-term “pause” for buyer demand that won’t prevent an acceleration in the housing recovery next year, Chief Executive Officer Jeffrey Mezger said on a Dec. 19 earnings call.

Personal Spending

Retailer discounting is also brightening consumers’ moods and translating into more demand. Commerce Department data show personal spending increased 0.5 percent last month after a 0.4 percent gain in October that was larger than previously estimated. Car dealers have also seen increased demand. Auto sales climbed to a 16.3 million annualized rate in November, the highest since May 2007, according to data from Ward’s Automotive Group. The pickup in the economy helps explain why Federal Reserve officials last week decided to trim monthly bond purchases to $75 billion from $85 billion starting in January. It marked the first step toward unwinding the unprecedented stimulus that Chairman Ben S. Bernanke put in place to help the economy recover from the worst recession since the 1930s. Policy makers also said the target for the benchmark interest rate will probably remain near zero “well past” the time the jobless rate reaches 6.5 percent.

To contact the reporter on this story: Michelle Jamrisko in Washington atmjamrisko@bloomberg.net; Shobhana Chandra in Washington atschandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

FABTECH 2013 Largest Show in History

Chicago, IL — November 22, 2013– FABTECH, the largest metal forming, fabricating, welding and finishing event in North America, announced today that its recently completed show in Chicago set records for numbers of attendees and exhibitors as well as for floor space.   A total of 40,667 attendees visited 1,573 exhibitors to see live equipment demonstrations, compare products side-by-side to find cost-saving solutions at product displays spread across 650,000 square feet of exhibits at McCormick Place.  Attendees also benefited from the FABTECH educational conference held simultaneously with the four-day expo that included an unprecedented number of expert-led sessions on some of the hottest topics in manufacturing.

“While breaking our own records is impressive, most important were the reports we received from attendees and exhibitors,” said John Catalano, FABTECH show co-manager.   “Attendees were impressed with the record size and scope of the show and the number of new products and innovative technologies on display.   Exhibitors were enthusiastic and report that sales activity was brisk and leads were plentiful.”

FABTECH attendees and exhibitors in Chicago also raised more than $15,000 for the victims of the severe storms and tornados that devastated Washington, Illinois and other areas of the state on November 17th.  The five FABTECH co-sponsors made a financial commitment to start the campaign with all funds collected going to the American Red Cross to help victims of the storms.

“We send our condolences to the residents of Illinois, our host state for FABTECH 2013, and we know that many are struggling to recover from the physical and economic damage caused by these storms that hit on a set-up day for the show,” said Catalano.  “Some of our exhibitors and attendees were directly impacted by this tragedy, and we wanted to show our support.  We are continuing to collect donations www.crowdrise.com/fabtechexpocares and encourage the manufacturing community to contribute.”

FABTECH 2013 in Chicago sets the tone for the upcoming year of international programming by the FABTECH Partners.  FABTECH Canada, will take place March 18-20, 2014 at the Toronto Congress Centre.  On April 10-12, the inaugural FABTECH India, co-located with the India Institute of Welding’s Weld India Exhibition, will take place in New Delhi.  On May 6-8, 2014, FABTECH Mexico will take place at the Centro Banamex in Mexico City.

The five FABTECH co-sponsors represent a wide variety of expertise and include: SME, the American Welding Society (AWS), the Fabricators & Manufacturers Association, International (FMA), the Precision Metalforming Association (PMA), and the Chemical Coaters Association International (CCAI).  Together, these associations bring unmatched technical proficiency and industry insight to FABTECH. Read more about FABTECH’s co-sponsors here.

FABTECH 2014 will be held on November 11-13, 2014 in Atlanta, GA.  Additional information can be found at www.fabtechexpo.com.

Consumer Sentiment in U.S. Increases to a Five-Month High (1)

The Thomson Reuters/University of Michigan final index of consumer sentiment climbed to 82.5 from 75.1 in November. Economists in a Bloomberg survey called for 83, according to the median projection. The preliminary December reading was 82.5.

A pickup in employment, higher property values and stock-market gains are bolstering household wealth and underpinning sentiment. Another report today showed the improvement is translating into more consumer purchases, which account for almost 70 percent of the economy.

“Moods are getting better and we’re starting to see consumers get a little more active,” said Michael Moran, chief economist at Daiwa Capital Markets America Inc. in New York, who correctly predicted the confidence index. “Job growth is a little stronger, lower gasoline helps a bit and there’s also pent-up demand. It’s suggesting a pickup in fourth-quarter consumer spending.”

Estimates in the Bloomberg survey ranged from 77 to 85. The index averaged 89 in the five years leading up to the slump that began in December 2007, and 64.2 during the 18-month recession that ended in June 2009.

Consumer Spending

Other figures today showed personal spending increased 0.5 percent in November after a 0.4 percent gain that was larger than initially reported, according to the Commerce Department. After adjusting the data for inflation, purchases also climbed 0.5 percent, the biggest advance since February 2012.

Stocks rose, with benchmark indexes extending all-time highs. The Standard & Poor’s 500 Index advanced 0.5 percent to 1,826.42 at 10:40 a.m. in New York.

The Michigan sentiment survey’s current conditions index, which takes stock of Americans’ view of their personal finances, rose to a five-month high of 98.6 in December, from 88 in November.

The measure of expectations six months from now increased to 72.1 from 66.8 last month.

Americans expect an inflation rate of 3 percent over the next year, compared with 2.9 percent in the prior month. Over the next five years, they expect a 2.7 percent rate of inflation, down from 2.9 percent seen in November.

Cheaper Gasoline

Cheaper fuel is providing relief to households. The cost of a gallon of regular-grade gasoline averaged $3.25 in the first 20 days of December, compared with the 2013 high of $3.79 reached on Feb. 26.

Today’s Michigan survey figures are consistent with other confidence measures reported recently. The Bloomberg Consumer Comfort Index (COMFCOMF) for the week ended Dec. 15 jumped to the highest level since September.

Property values are one source of comfort for homeowners. The S&P/Case-Shiller national home-price gauge rose 11.2 percent in the third quarter from the same period in 2012, the biggest year-over-year advance since the first three months of 2006, the latest available data showed.

Equity prices are buoying Americans’ wealth, with the S&P 500 up 27 percent this year through last week.

Job Growth

Payrolls expanded by 203,000 workers in November after a 200,000 gain in October, and the jobless rate fell to a five-year low of 7 percent, according to Labor Department figures.

The improvement in the economy and job market helps explain why the Federal Reserve decided to begin reducing stimulus. The central bank on Dec. 18 said it will trim monthly bond purchases to $75 billion from $85 billion starting in January.

Sustained gains in consumer confidence are fueling purchases and benefiting companies such as Neiman Marcus Group LLC. Retail sales in November climbed by the most in five months, Commerce Department figures showed on Dec. 12.

Neiman Marcus Chief Executive Officer Karen Katz said the feedback from the Dallas-based retailer’s sales staff was that shoppers are spending this holiday season, and the most affluent consumers are “feeling good” about their finances.

“We are in constant communication with our sellers, they’re telling us that they’re just feeling like the customers are coming in really ready to shop,” Katz said on a Dec. 18 earnings call with analysts. “If we offer them kind of unique merchandise, really regardless of the category, they’re really open to spending money.”

Demand for cars continues to firm. Auto sales advanced to a 16.3 million annualized rate in November, the highest since May 2007, according to data from Ward’s Automotive Group.

To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

‘Twas the Night Before Manufacturing Monday

It’s the time of year where people all over the world can expect to hear glad tidings from carolers, but surprisingly, signs of happiness and brighter futures have also been coming from the pages of the daily newspaper. We’re accustomed to hearing about job losses and economic uncertainty, but American manufacturing just received a huge present this year thanks to the rebounding of the U.S. auto industry.

After the global financial crisis of 2008, many automakers looked like they wouldn’t survive the year, even the largest of manufacturers like General Motors. In order to stay afloat, GM had to enter a government-backed state of bankruptcy in 2009. At the time, it looked like one of the biggest auto manufacturers was going to go under, and there was nothing anyone could do to stop it.

Jump forward a few years, and the United States government sold its remaining shares of GM stock, returning its holdings to the public market in a sign of confidence over the company’s future. Not only has GM rebounded, it is soaring ahead with a recent announcement that the company will invest in American factories, saving many jobs and creating hundreds more.

Five plants across the American Midwest will receive about $1.3 billion in investment from General Motors, according to this article published by Forbes. This Christmas gift is more than charity, however, as these plants will focus on creating fuel-efficient transmission and engines as well as work on other vehicle quality improvements. Three of the plants are in Michigan and one each is in Indiana and Ohio.

General Motors corporate plans also spell happy days for American Christmases in the future. After decades of globalization drawing away jobs from the United States, GM announced that its Australia operations would wind down at the same time that they’re increasing their presence back in America.

It may only be one company, but it’s a great sign that one of America’s former great corporations is making a rebound, and choosing to do it on American soil. This is just one of the reasons Marshall Fabrication Machinery has found to rejoice in the United States manufacturing industry this holiday season.

FABTECH 2013

American manufacturing may still be trying to recoup from the losses of the last few decades, but there’s plenty of infrastructure in the industry that may lead the way to brighter days. In any industry, trade shows are an important way to find out new ideas and methods of operating business in a successful way. Now that U.S. manufacturing is staging its own comeback, it’s more important to stay on top of new developments than ever before.

In late November 2013, FABTECH opened up in Chicago, IL. This four-day industry event, which was held in the city’s McCormick Place conference halls, displayed the newest innovations in various aspects of manufacturing, including welding, metal forming, fabricating and finishing.

The 2013 version of this trade show hosted educational exhibits from about 1,500 companies involved with various aspects of manufacturing, many of them being interactive in nature. There were about 35,000 attendees over the course of the four days. Over 550,000 square feet was taken up with exhibits and events in two different halls at McCormick Place during the course of the exposition. Check out the official website for the conference.

Various innovations that were displayed came from a wide variety of fabrication and manufacturing companies. Keller USA, which develops industrial air filtration systems, has a new energy efficient and environmentally friendly for dry separation of wet painting for recycling or disposal of unused materials. Saar-Hartmetall USA, an innovator in the field of metal fabrication, gave demonstrations of its new line of handheld beveling tools. These are just a couple of examples of the new manufacturing and fabrication solution that were on view at FABTECH 2013.

You have to keep your pulse on the industry to stay successful. American manufacturing will come back, and when it does, Marshall Fabrication Machinery will be on top of all of the latest developments. Make sure to visit our website and blog often to find out more exciting information about the comeback of manufacturing in the United States.