Manufacturing leading global economic recovery

Posted Sep 24, 2013 by Shane Blanchard
The last month has seen some good news in terms of manufacturing, and not just in one country. Germany, China and the U.S. have all released positive manufacturing data.
Chinese pollution
Chinese pollution
Borja Fernández
Data released in early September showed that German manufacturing grew at its fastest pace in two years for the month of August. This was part of the reason for Angela Merkel winning re-election as Chancellor. The growth came from increased domestic demand as well as an increase in exports. The data released also showed the largest increase in backlogs of manufacturing orders since May 2011.
The Philadelphia Federal Reserve Bank released data last week showing that manufacturing activity in the Mid-Atlantic area increased in September by the most in two years. The Mid-Atlantic area includes factories in Pennsylvania, Delaware and New Jersey.
And last but not least, an index of manufacturing in China increased in September by the most in six months. The report showed increases in output, new orders and exports. Also, exports had risen in August by 7.2 percent over last year, which was the biggest gain since April.
Of course, the global economy still faces challenges from stubbornly high unemployment in Spain and Greece with unemployment rates of 26 and 29 percent respectively, as well as deficits and unemployment in the U.S. But with positive economic data coming out of the U.S., Germany and China, a slow economic recovery may finally be picking up steam.