Manufacturers Report Significant Improvement

(Industry Week – Agence France-Presse)

Emerging optimism prevails in the manufacturing sector that the ‘Great Recession’ is finally turning to recovery, according to the quarterly Manufacturers Alliance/MAPI Survey. The March 2010 composite index rose to 78% from 57% reported in the December 2009 report, representing the highest level since the June 2004 survey registered 80%, and marks the second straight quarter it has reached 50% or above.

Just one year ago the March 2009 index registered an historic low 21%.

“The sharp increase in the composite index, along with significant improvement in individual indexes, point to increased confidence that the manufacturing sector will continue to recover from the rapid decline that took hold in the fourth quarter of 2008 and continued through the first half of 2009,” said Donald A. Norman, Ph.D., MAPI Economist. “It is important to recognize, however, that many of the individual indexes are based on year-over-year comparisons and the composite index measures the direction of change rather than the absolute strength of activity in manufacturing. Still, the extent of the increases clearly points to further expansion.” Read more here.