Following up on yesterday's nice surprise from the Institute for Supply Management, the Census Bureau today brings glad tidings from the August report on new orders for manufactured goods:
New orders for manufactured goods in August increased $9.7 billion or 2.5 percent to $395.2 billion, the U.S. Census Bureau reported today. This followed a 2.5 percent decrease in July. Shipments, up for the fourth consecutive month, increased $6.6 billion or 1.7 percent to $393.5 billion. This was at the highest level since the series was first stated on a NAICS basis in 1992 and followed a 0.1 percent increase in July. Unfilled orders, up for the fourth consecutive month, increased $9.2 billion or 1.6 percent to $590.0 billion. This was at the highest level since the series began and followed a 1.0 percent July increase. Inventories, down following two consecutive monthly increases, decreased $0.6 billion or 0.1 percent to $463.7 billion. This followed a 0.6 percent July increase.
A typical reaction to the report was provided at MarketWatch:
The increase "was broad-based, indicating current strength in the factory sector in August," said Marisa DiNatale, an economist at Economy.com. "At least prior to Katrina, the manufacturing industry appears to have been healthy."
The pre-Katrina qualification will probably make some skeptical, and for those who like their glasses half-full the not-so-keen take on the residential housing sector keeps plugging along: The Big Picture links to a New York Times article claiming that prices are slowing in previously hot markets. (Reader jjj notices too!) In anticipation of Halloween, Calculated Risk has the scoop on a series of scary articles from The Mercury News.
The Capital Spectator allows that these developments may yet turn the economic punch sour, but warns that "the burden of proof remains on the shoulders of the bond bulls, at least for today."
UPDATE: The Wall Street Journal also has the story on the cooling off of hot housing markets.