Improvement on Horizon for Industrial Sector Says Industry Group

(Industry Week)

The forward-looking indexes, like that for annual orders, are at much higher levels, indicating that manufacturing activity is expected to increase in 2010

While the economic recovery in manufacturing is likely to be marked with numerous rough patches, signs are finally emerging that the sector can expect brighter days ahead, according to Manufacturers Alliance/MAPI.

The September 2009 composite index rose to 38 from a near-historic low of 24 reported in June 2009. It also represents the highest level in a year, or since an index of 48 was recorded in September 2008. At 38, however, the index still indicates that overall manufacturing activity is expected to contract over the next three to six months, relative to the levels of one year ago when the economy was entering the severe recession. The September 2009 index marks the fifth consecutive quarterly reading below 50, the demarcation point between growth and contraction. Read more here.

Related: Autos Lead Increase in U.S. Factory Production (NYT/AP)