Statistical evidence suggests that the economy could be poised to improve, according to numbers compiled by National Association of Manufacturers chief economic Dave Huether.
Of the eleven indicators that were released at the end of May, only one worsened: home prices continued to decline. But there were improvements in new home sales, consumer confidence, initial unemployment claims and new orders for durable goods.
According to Huether, Federal Reserve Regional Banks in Dallas, Richmond and Kansas City reported increased manufacturing activity in their regions in May. The numbers are vastly better than those between November and March.
In Richmond, in particular, there was an actual increase in manufacturing activity in May – the first such time since March of 2008. Of the major Federal Reserve regional reports, Richmond’s May survey of manufacturing is the first that showed actual growth in industrial output since last September.
“While signs of improving economic conditions have only started to materialize within the past several months, the breadth of the improving indicators is noteworthy,” says Huether.