6 August 2009

The best sign yet that recession is over

The decline in the U.S. manufacturing sector continued to ease in July with factories boosting output.

That is an early sign that manufacturers and the overall economy are likely to grow in the third quarter—July, August, and September.

“The July ISM report is the clearest indication yet that the recession ended in either May or June,” RDQ Economics’ John Ryding reported to clients.

Still, the industries that tend to be leaders in recession recovery, housing and automobiles, are struggling and could continue to weigh on demand. The manufacturing sector very well may show growth as early as August.

For related information, go to www.isa.org/productivity.

Source: The Wall Street Journal