Tuesday, 8 January 2013

U.S. Manufacturing New Orders for Nov-12 drops 1.2% on last year, 12.8% below All-Time High

The Value of Manufacturers' New Orders for All Manufacturing Industries With Unfilled Orders in the U.S. dropped 1.2% on November 2011 according to recent figures released for the month of November 2012 by FRED. The value of new orders for November 2012 was USD 161.449 bn, 12.8% lower than the all-time high monthly figure of USD 185.081 bn achieved in December 2007. New orders for the month did however increase slightly compared to previous month (0.2%). Following 31 months of YoY percentage increase in the value of new orders between January 2010 and July 2012, the growth rate has once again turned negative (on average) for the last four months. 
For the U.S. economy to really recover on a sustainable basis and prosper once again, higher manufacturing, lower consumer spending of imported goods and a higher personal savings rate is needed. Instead, the opposite is happening with consumer spending financed with credit (see The Making of a New Credit Bubble?: U.S. Bank Credit hits another All-Time Highreaching new highs and the personal savings rate remaining very low (see Personal Savings Rate in the U.S. remains Low as Consumer Spending hits Record High), not very different at all to what happened prior to the "credit crunch" of 2008.

No comments:

Post a comment