Category: News

US Businesses Expand At Fastest Rate Since 1988

Chicago Purchasing Managers Index Increases to 68.8 in January

By Alex Kowalski – Jan 31, 2011 8:10 AM PT

Businesses in the U.S. expanded in January at the fastest pace since July 1988, indicating the world’s largest economy has momentum at the start of the year.

The Institute for Supply Management-Chicago Inc. said today its business barometer rose this month to 68.8 from 66.8 in December. Figures greater than 50 signal expansion, and economists projected the gauge would slip to 64.5, based on the median estimate in a Bloomberg survey.

Click the pictures to the left for the video.

Orders, production and employment increased as manufacturers such as Catepillar Inc. benefited from a pickup in consumer purchases and stronger export markets in emerging economies such as China. Consumer purchases in the final three months of 2010 were the strongest in more than four years, figures last week showed.

“This fortifies the stability of the recovery,” said Maxwell Clarke, chief U.S. economist at IDEAglobal in New York. “You definitely see traction from manufacturing going forward.”

Estimates from 41 economists for the Chicago purchasers’ index ranged from 60 to 71.3, according to the Bloomberg survey.

Data today from the Commerce Department showed Americans’ spending rose more than forecast in December. Household purchases increased 0.7 percent, while incomes gained 0.4 percent for a second month, the figures showed.

Stocks held gains after the reports and Treasuries fell. The Standard & Poor’s 500 Index rose 0.5 percent to 1,282.74 at 11:07 a.m. in New York. The yield on the benchmark 10-year note increased to 3.35 percent from 3.32 percent late on Jan. 28.

Orders, Employment

The Chicago group’s production gauge rose to 73.7 from December’s reading of 72.2. The gauge of new orders increased to 75.7, the highest since December 1983, from 71.3. The employment measure rose to 64.1, the strongest since May 1984, from 58.4 the prior month.

Economists watch the Chicago index and other regional manufacturing reports for an early reading on the outlook nationally. The Chicago group says its membership includes both manufacturers and service providers, making the gauge of measure of overall growth. Its members have operations across the U.S. and abroad.

Other measures of regional manufacturing have shown strength in January. The Federal Reserve Bank of New York on Jan. 18 said manufacturing expanded in that region this month, and the Philadelphia Fed said two days later that factories grew for a fourth month.

Auto Sales

Automakers are seeing sales pick up. Car purchases in December rose to a 12.53 million unit annual pace, the highest since August 2009, from 12.3 million in November, industry data showed this month.

The ISM’s monthly national factory index, due tomorrow, was probably little changed at 58 in January after 58.5 the prior month. A reading above 50 signals expansion.

A pickup in consumer demand, which accounts for about 70 percent of the U.S. economy, could add to gains in manufacturing. The Commerce Department reported last week that household purchases rose at a 4.4 percent pace in the fourth quarter, the fastest in more than four years, while the economy grew at a 3.2 percent rate.

Consumers may further ramp up spending as they benefit from an $858 billion bill extending all Bush-era tax cuts for two years. The legislation also extended the window for expanded unemployment insurance benefits through 2011, trimmed payrolls taxes and included accelerated tax depreciation for equipment purchases.

The manufacturing industry, which accounts for about 11 percent of the economy, has been at the forefront of the economic recovery that began in 2009.

Caterpillar Profit

Caterpillar, the world’s largest maker of construction equipment, posted fourth-quarter profit that topped analysts’ estimates as sales advanced in China, Australia and Latin America. Revenue climbed 62 percent to $12.8 billion from $7.9 billion a year earlier, the company said last week.

In 2011, sales will exceed $50 billion, compared with $42.59 billion in 2010, according to the company.

“There’s quite a bit of pent-up demand there yet to come,” in North America, Ed Rapp, chief financial officer of the Peoria, Illinois-based company, said last week during a conference call. “The tailwinds come as we get more robust growth.”

To contact the reporters on this story: Alexander Kowalski in Washington at akowalski13@bloomberg.net

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

3.2% GDP growth rate boosts hope for 2011

WASHINGTON —

The economy gained strength at the end of last year as Americans spent at the fastest pace in four years and U.S. companies sold more overseas. The growth is boosting hopes for a stronger 2011.

The Commerce Department reported Friday that growth rose to an annual rate of 3.2 percent in the October-December quarter. That’s an improvement from the 2.6 percent growth in the previous quarter. And it was the best quarterly showing since the start of last year.

The economy has now consistently picked up speed since hitting a rough path in the spring.

From the Associated Press
January 28, 2011, 5:47 a.m.

Companies’ Soaring Profits Offer Optimism For All US Manufacturing.

NEW YORK/CHICAGO (Reuters) – U.S. manufacturing companies posted higher-than-expected results, as sharply improved margins boosted profits amid strong industrial demand and growth in emerging markets.

Companies including Catepillar Inc., Tyco International Ltd and Eaton Group reported strong sales and earnings, and investors were looking ahead for signs the industrial rebound would begin to affect the wider economy and boost employment.

Catepillar provided an encouraging sign for U.S. jobs but also showed that employment remains one of the main ways companies can control profit margins.

The machinery maker, which slashed nearly 30,000 full-time and contract jobs worldwide during the recession, said it had rehired about 8,200 workers worldwide in 2010, and hired another 11,000 temporary contract workers, half in the United States.

“A lot of that driven by export demand, so that was an increase in employment,” Caterpillar’s head of investor relations, Mike DeWalt, said on a conference call. “But if you look at sales, sales went up quite a bit more than that.”

Caterpillar’s operating margins jumped from 2 percent a year ago to 10 percent in the fourth quarter. Other large industrial names also expanded margins.

Caterpillar shares were up 1.7 percent at $97.33, an all-time high for the industrial bellwether.

Caterpillar reported a stronger-than-expected quarterly profit, lifted by increased sales of its machines in Asia and Latin America and a sharp rebound in demand in North America, especially from mining customers. The company also forecast it would post a 2011 profit near $6.00 per share, which is above the market consensus.

ADDING JOBS

“So far so good,” said Oliver Pursche, president of Gary Goldberg Financial Services, about the earnings season for manufacturing companies. He added that corporate comments on jobs were one of the key factors he was listening for as an investor.

“The more they talk about hiring, the more comfortable we’re going to be with that company. If you’re hiring people, your business is growing.”

Eaton is likely to grow its workforce by a few percentage points this year as markets such as autos, aerospace and non-residential construction recover from recession, the diversified industrial company’s CEO said.

“You’ll see hiring here in the U.S. as well as around the world,” Sandy Cutler told Reuters.

Eaton’s quarterly profit beat expectations on a strong truck market and higher demand for its electrical systems. The maker of hydraulics, truck transmissions and other industrial products forecast record 2011 earnings, set a stock split and announced a 17 percent dividend increase.

Tyco’s quarterly earnings more than doubled, beating Wall Street expectations amid sharply higher profits at the conglomerate’s security business, which includes the former ADT Worldwide service.

Tyco, which said it was close to finalizing acquisitions worth around $500 million, also raised its full-year forecast. Its shares were up 0.8 percent at $45 in afternoon trading. It was one of many stocks trading near multiyear highs.

Industrial shares rose 24 percent last year, lagging only the consumer discretionary sector, according to Standard & Poor’s, which recommends investors stay “overweight” in industrials amid expectations of continued global expansion.

The sector has also outrun the broader stock market in 2011, and a correction could be imminent, S&P said.

As companies keyed to industrial demand continued a trend of beating Wall Street forecasts, investors took profits in some names, like Kennametal Inc. and Timken Co.

Tool maker Kennametal, considered a pure play on industrial production, raised its full-year forecast above Street estimates amid strong demand from industrial and transportation markets. Profit at Timken, maker of bearings and specialty steel, was helped by auto and truck production and an ability to push through higher prices.

Electrical and electronics products maker Hubbell Inc also beat, as did Harsco, which provides products to metals producers.

Conglomerate Danaher Corp. showed sharply higher profits in its industrial components and test-and-measurement segments. It affirmed 2011 earnings targets.

“We expect the global economy to continue to improve in 2011, lead by the emerging markets,” Danaher CEO Larry Culp said on the company’s conference call.

WIDESPREAD OPTIMISM

Optimism among manufacturing executives is widespread. Sixty-three percent are upbeat about U.S. economic prospects over the next 12 months, according to a quarterly survey by PricewaterhouseCoopers. That marked a 28-point increase over the prior quarter.

Still, fewer than half — 48 percent — plan to add employees over the next year, PwC found, partly reflecting concerns about taxes, regulation and soft demand.

Worries about corporate taxes, especially, may keep U.S. companies from significantly boosting capacity until the second half of 2011, said analyst Brian Langenberg of Langenberg & Co. U.S. consumers remain constrained by the housing market.

A reminder that not all is well on the housing front came from the No. 1 homebuilder, DR Horton Inc, which posted a wider-than-expected loss.

“Industrial production is increasing on a global basis,” Langenberg said. “(Manufacturers) need to increase capital spending.

“When do they have to boost capacity? Now. Where? Not necessarily in the U.S.”

(Reporting by Nick Zieminski and James B. Kelleher; Additional reporting by Scott Malone in Boston; Editing by John Wallace, Matthew Lewis, Phil Berlowitz)

By REUTERS
Published: January 27, 2011

Filed at 3:04 p.m. ET

Consumer Confidence Index hits 8-month high

WASHINGTON  — Consumer confidence hit an eight-month high in January. The increase suggests the rising spirits that fueled a holiday shopping boom are carrying over into the new year as people feel better about the job market.

The Conference Board said today its Consumer Confidence Index climbed to 60.6 this month from 53.3 in December.

Click HERE for YouTube video.

While confidence is still far from the 90 that signals a healthy consumer mindset, the January improvement was better than expected. Some economists said the big tax relief package Congress passed in late December may have helped.

“So much for a ho-hum January,” said Jennifer Lee, senior economist at BMO Capital Markets. “The signing of the stimulus bill and all that it is intended to bring is buoying sentiment.”

The $858 billion package extended the Bush-era tax relief at all income levels for two years, provided tax breaks for businesses and reduced Social Security payroll taxes by 2 percentage points this year. The Social Security reduction will mean an estimated $1,000 in additional after-tax income for the average family, according to White House estimates.

Other analysts suggested that the recent gains in the stock market and improving labor market conditions were trumping higher gasoline prices and falling home prices. The Standard & Poor’s/Case-Shiller 20-city index showed home prices falling in most of America’s largest cities and hitting their lowest point since the housing bust in eight markets.

“The recovery in stock prices and the beginnings of an improvement in the labor market are making people feel better about the economy,” said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

The January confidence figure was the highest last May’s 62.7. At that time, consumer attitudes were improving as economic growth seemed to be taking off. However, the economy stalled in the summer, and so did confidence.

Confidence has been depressed by unemployment that surged during the country’s worst recession since the 1930s and has stayed stubbornly high even though the downturn ended in June 2009. Confidence has not been above 90 since the recession began in December 2007.

In the Conference Board survey, the percentage of people surveyed who felt jobs were hard to get fell slightly to 43.4 percent from 46 percent in December. The share who expected to see more jobs six months from now rose to 16 percent from 14.2 percent.

That finding supported a separate report Monday from the National Association for Business Economics that showed the number of firms expressing positive views on hiring had climbed to the highest level in 12 years.

While confidence has stayed weak since the recession ended in summer 2009, consumer spending has been picking up. During the 2010 holiday shopping season, sales increased at the fastest rate in six years.

Economists are hoping that consumer confidence will keep rising in 2011 as the economy improves and unemployment declines.

Employers added 1.1 million jobs for all of 2010, but the nation still has 7.2 million fewer jobs than it did in December 2007, when the recession began. Many economists expect the nation will create twice as many jobs this year as it did last year as economic growth picks up.

The Conference Board confidence index was based on answers to questions from a survey of 5,000 U.S. households taken through Jan. 18.

By Martin  Crutsinger Associated Press
Jan.25, 2011, 2:28PM

Industrial Economy Stronger Than Thought, Economists Say.

Under the headline “Industrial Economy Builds Fresh Strength,” the Wall Street Journal (1/21, Tita, Hagerty, subscription required) quotes Jefferies & Co. analyst Stephen Volkmann as saying, “The industrial economy is stronger than many people believe.” He added, “I think there are still some legs to this recovery just to get back to normal levels” in the wake of the recession. The Journal notes earnings reports from industrial companies have been largely positive, which is portrayed as a good sign for coming reports. CEO Don Washkewicz of Parker Hannifin, which doubled its year-on-year profit for the fiscal quarter, said, “Based on the way these orders are coming through, I think this [rebound] is going to be sustainable.” Rockwell Collins and Johnson Controls also reported strong results.

Click HERE for complete article (subscription required).

U.S. Factories Buck Decline

Sector Creating More Jobs Than It’s Cutting; ‘Shining Star’

The economists’ projections for this year—calling for a gain of about 2.5%, or 330,000 manufacturing jobs—won’t come close to making up for the nearly six million lost since 1997. But manufacturing should be at least a modest contributor to total U.S. employment in the next couple of years, these economists say.

After a steep slump during the recession, manufacturing is “the shining star of this recovery,” says Thomas Runiewicz, an economist at IHS. He expects total U.S. manufacturing jobs this year to rise to about 12 million. Currently, manufacturing jobs account for about 9% of all U.S. nonfarm jobs; the average pay for those jobs is roughly $22 an hour, or nearly twice the average for service jobs, according to government data.

Despite the upbeat forecasts, job growth may remain modest because many companies are finding ways to increase production through greater efficiency and automation, without adding many workers. In the third quarter, U.S. manufacturing productivity increased as output rose 7.1% from a year earlier and hours worked grew just 3%. Conrad Winkler, a vice president at the consulting firm Booz & Co. who focuses on manufacturing, says manufacturers are being very cautious in their hiring, partly to avoid the risk of having to lay off people later on.

Manufacturing is going to be a significant source of job growth over the next decade,” says Mark Zandi, chief economist at Moody’s Analytics. He says U.S. manufacturers that survived the brutal 2008-09 recession are now very competitive, with much lower labor costs and debt burdens, and so can afford to expand. While they will keep building factories overseas to address demand in emerging markets, they also will invest in U.S. plants, Mr. Zandi says. He expects manufacturing job growth to average about 2% a year through 2015.

The job growth is expected as companies replace aging equipment, take advantage of government incentives, seek energy savings and rediscover that it makes sense to produce some products, such as ovens and construction machinery, at home rather than shipping them long distances. A new tax break, approved by Congress in December, is expected to further stimulate investment by letting companies deduct from taxable income 100% of certain types of investments in 2011.

By James R. Hagerty
Wall Street Journal – Business 1/19/2011
Write to
James R. Hagerty at bob.hagerty@wsj.com

Click HERE to read the complete article

U.S. Manufacturing Grows at Fastest Pace in Seven Months, Leading Recovery

Manufacturing in the U.S. expanded in December at the fastest pace in seven months, reinforcing signs the expansion is gaining momentum.

The Institute for Supply Management’s index climbed to 57 last month from 56.6 in November, the Tempe, Arizona-based group said today. A reading greater than 50 points to expansion, and the figure matched the median forecast of economists surveyed by Bloomberg News.

Stocks rallied, sending benchmark indexes up the most in a month, on speculation U.S. growth will keep strengthening in early 2011, raising prospects for more hiring. Increased spending by American consumers and business investment is helping drive production gains at factories that make up about 11 percent of the world’s largest economy.

“The factory sector is growing at a brisk pace, and it’s getting fueled by both U.S. demand and growth in exports,” said Mike Englund, chief economist at Action Economics LLC in Boulder, Colorado, who correctly forecast the ISM figure. “The economic recovery will get help from manufacturing.”

Former Federal Reserve Governor Frederic Mishkin today said that while the central bank will complete its $600 billion bond- purchase program to help fuel the economy, a third round of so-called quantitative easing is unlikely.

“The fact that the economy is stronger right now makes it much less likely we’re going to see a QE3,” Mishkin, an economist at Columbia University in New York, said today in an interview on Bloomberg Television’s “In the Loop With Betty Liu.”

Click HERE for the video on the interview with Frederic Mishkin, a professor at Columbia University and former Federal Reserve governor.

Professor Mishkin speaking with Jon Erlichman and Michael McKee on Bloomberg Television’s “In the Loop,” also comments on the U.S. economy and outlook for inflation. (Source: Bloomberg)

Stocks Rally

The Standard & Poor’s 500 Index increased 1.1 percent to 1,271.87, its highest close since Sept. 3, 2008, as of 4 p.m. in New York. The benchmark 10-year Treasury note declined, pushing up the yield to 3.34 percent from 3.3 percent late on Dec. 31.

Another report today showed construction spending rose in November for a third month, helped in part by federal government projects. A 0.4 percent gain followed a 0.7 percent increase in October, the Commerce Department said.

The median ISM forecast of economists in the Bloomberg survey was based on 63 projections and estimates ranged from 55 to 60. The U.S. data followed a report that European manufacturing expanded more than initially estimated in December, powered by Germany’s export-led expansion.

A gauge of factory activity in the euro area rose to 57.1 from 55.3 the previous month, London-based Markit Economics said today. That’s higher than the 56.8 reported earlier for December.

China’s Economy

China’s manufacturing growth, meanwhile, slowed in December partly because of tighter monetary policy. A purchasing managers’ index fell to 53.9 from a seven-month high of 55.2 in November, China’s logistics federation and the statistics bureau said Jan. 1.

St. Petersburg, Florida-based Jabil Circuit Inc., which provides manufacturing services, is one company benefiting from stronger emerging economies such as China and India. Jabil said Dec. 20 that its revenue rose $4.1 billion in the three months ended Nov. 30, up from $3.1 billion a year earlier.

“At this point, in terms of U.S. spending, enterprise spending looks stable,” Timothy Main, chief executive officer of Jabil, said on a teleconference with analysts on Dec. 20. “International spending looks very strong and other areas of enterprise infrastructure are pretty robust.”

Orders, Production

In the U.S., factories reported faster rates of orders and production. The ISM’s bookings measure rose in December to a seven-month high.

“Manufacturers are carrying a good bit of momentum into January,” Norbert Ore, chairman of the ISM factory survey, said today on a conference call with reporters. There is “good balance between new orders and production,” and “there’s still some room” for inventory replenishment, he said.

Further gains in manufacturing may come from a pickup in consumer spending, which accounts for about 70 percent of the U.S. economy. Retailers’ 2010 holiday sales jumped 5.5 percent for the best performance since 2005, according to MasterCard Advisors’ SpendingPulse, which measures sales by all payment forms. The gain was 4.1 percent a year earlier. The numbers include Internet sales and exclude automobile purchases.

Auto dealers are also seeing improved demand. Car sales in November rose to a 12.26 million unit pace, the highest since the government’s cash-for-clunkers program in August 2009, according to industry data.

Economists in December boosted forecasts for fourth-quarter growth, reflecting a pickup in consumer spending and passage of an $858 billion bill extending all Bush-era tax cuts for two years. The legislation also continues expanded unemployment insurance benefits through 2011, trims payrolls taxes and includes accelerated tax depreciation for equipment purchases.

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

Additional interviews on the topic. Please click the picture for the video.

Jan. 3 (Bloomberg) — Drew Matus, senior U.S. economist for UBS Securities LLC, talks about the outlook for the U.S. economy in 2011. Matus, speaking with Deirdre Bolton on Bloomberg Television’s “InsideTrack,” also discusses Federal Reserve monetary policy. (Source: Bloomberg)

Dec. 30 (Bloomberg) — Lakshman Achuthan, managing director of Economic Cycle Research Institute, talks about the outlook for the U.S. economy and employment in 2011. Achuthan, speaking with Melissa Long on Bloomberg Television’s “Bottom Line,” also discusses Federal Reserve policy. (Source: Bloomberg)

Texas Manufacturing Activity Grows for Fourth Consecutive Month

The future new orders index rose to its highest level in four years.

Factory activity increased in December, according to the Texas Manufacturing Outlook Survey released on Dec. 27. The production index, a key measure of state manufacturing conditions, was positive for the fourth consecutive month.

Manufacturers’ six-month outlook continued to improve. The future indexes for production and shipments edged up further; more than half of respondents expect increases in these measures in coming months. The future new orders index rose to its highest level in four years, with all firms anticipating either increased or stable order volumes.

The future general business activity index advanced from 26 to 37, and the future company outlook index rose to 38, with 94% of firms anticipating similar or improved conditions six months from now.

Other indicators of current activity also remained positive, signaling continued growth in manufacturing. The shipments index held steady at a reading of 8, and the capacity utilization index rose from 10 to 15, with 29% of manufacturers reporting an increase.

The new orders index declined in December but stayed in positive territory, with more than three-fourths of firms noting increased or unchanged order volumes.

Measures of general business conditions remained positive in December. The general business activity index came in at 13, with nearly a quarter of respondents noting improved activity. The company outlook index edged down to 15, although the share of manufacturers who said their outlook improved rose to its highest level since May.

Labor market indicators improved notably this month. The employment index rose from 6 in November to 15 in December, reaching its highest level since early 2007. Twenty-four percent of firms reported hiring new workers, compared with 9% reporting layoffs. Hours worked increased again this month, and the wages and benefits index rose from 5 to 10.

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity. Data were collected Dec. 14–21, and 96 Texas manufacturers responded to the survey. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.

Prices climbed again in December. Input costs remained on an upward trend, with the raw materials price index rising from 35 to 44. Forty-six percent of manufacturers saw an increase in prices paid for raw materials, compared with only 2% who saw a decrease. Finished goods prices rose for the second month in a row, although the great majority of respondents continued to note no change. More than half of respondents anticipate further increases in raw materials prices over the next six months, while 37% expect higher finished goods prices.

Industry Week Dec. 27, 2010

Fabtech 2010 Post Show Report

FINAL VERIFIED STATISTICS:

  • Attendance: 21,929
  • Exhibitors: 1,138
  • Square Feet: 370,400

EXHIBITOR SURVEY RESULTS

  • 82% of exhibitors were satisfied or very satisfied with the QUALITY of attendees at the show.
  • 66% of exhibitors were satisfied or very satisfied with the QUANTITY of attendees at the show.
  • 77% of exhibitors were satisfied or very satisfied with the FABTECH show overall.

Source: Exhibitor Survey

Please click HERE to read the full 2010 Post Show Report

October Machine Tool Sales Drop 2.5%, but Factors Suggest Strength

Sales of machine tool sales to U.S. manufacturers and machine shops fell 2.5% during October, from $399.76 million to $387.13, according to data supplied by the Association for Manufacturing Technology (AMT) and the American Machine Tool Distributors’ Assn. (AMTDA) The information is based on actual data reported by companies participating in their monthly U.S. Machine Tool Consumption program, which includes information on a national and regional basis.

A separate source, IndustryInsight, indicates that sales of new machine tools in the U.S. totaled 1,215 units in October, which was an increase from September when it found 1,108 new units were sold. IndustryInsight also reports that October sales of used machine tools totaled 789 units.

The disparity between the two reports may be accounted for by the value of the machine tools sold during September, and/or by some differences in recording the dates of sales and deliveries. The USMTC September figures are somewhat anomalous in that they include data from sales of manufacturing technology during IMTS 2010, the industry’s biennial trade expo. Following that, the October USMTC results are considered strong, and represent a 154.9% improvement over October 2009 when manufacturing technology consumption totaled $151.86 million.

“Never in the history of the USMTC have we seen a post-IMTS October rival September so closely,” according to AMT president Douglas K. Woods.

Woods also said “increased Sec. 179 expensing” — a reference to an Internal Revenue Service allowance that businesses use to claim the cost of certain types of property as an expense, rather than a capital investment to be depreciated — “and 50% bonus depreciation enacted in late September helped offset the declines we normally see after a show.”

For the calendar year, the USMTC finds that January-October 2010 manufacturing consumption amounts to $2,477.06 million, an increase of 83.2% over the comparable 10-month period of 2009.

In regional sales, strong results from the Northeast and West offset the declines in other areas. October sales in the Northeast totaled $97.59 million, a 51% rise in manufacturing technology consumption from September’s $64.62 million, and a 277.5% improvement over October 2009. Year-to-date sales in the region amount to $461.40 million, up 75.9% versus the January-October 2009 period, according to the USMTC.

In the West, manufacturing technology consumption came in at $40.41 million for the month, 29.4% above the $31.24 million recorded for September and 78.6% above the October 2009 result. The year-to-date total for the region is $268.73 million, up 40.9% over the region’s January-October 2009 results.

The value of manufacturing technology in the Midwest was greater than in any other region during October at $116.66 million, but still represented a 3.3% decline from $120.67 during September. It was, however, a 147.5% improvement over October 2009 and it brings year-to-date consumption in the region to $349.01 million, a rise of 86.3% for the comparable period of 2009.

The Central region reported manufacturing technology consumption totaling $92.45 million for October, 18.7% less than September’s $113.72 million, but 167.7% better than October 2009 consumption. For the 10 months of 2010, the Central region has posted a total of $651.50 million, 101.2% better than the comparable figure for 2009.

October consumption in the Southern region amounted to $40.01 million, according to the USMTC, a 40.2% drop from September’s $66.92 million total but an improvement of 84.3% over October 2009. The region’s year-to-date consumption totals $349.01 million, 86.3% better than the regional consumption total for January-October 2009.

From American Machinist 12/15/2010

Graphs from AMTDA December 13, 2010 release “Manufacturing technology consumption up 83.2% year-to-date”