Text 16387, 85 rader
Skriven 2005-12-01 20:41:00 av Jeff Binkley (1:226/600)
Ärende: Economy
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http://biz.yahoo.com/ap/051201/economy.html?.v=24

AP
Manufacturing Expands in November
Thursday December 1, 5:52 pm ET 
By Aleksandrs Rozens, AP Business Writer  
Manufacturing Expands in November; Personal Income, Construction 
Spending Rise in October 


NEW YORK (AP) -- Manufacturing expanded in November in industries 
ranging from apparel to tobacco, a widely watched survey showed on 
Thursday, and several other reports painted a picture of a U.S. economy 
gaining strength.

 
The government reported that personal income and spending edged up in 
October, construction spending rose that month and fewer Americans 
applied for unemployment insurance last week -- all signs of a 
surprising resilience after one of the worst hurricane seasons on 
record.

But some automakers reported sales declines for November and the 
nation's retailers reported mixed results for the month, suggesting that 
consumers may be holding out for even bigger price discounts before 
Christmas. Many of the winners last month were those that heavily 
discounted over the Thanksgiving weekend, including Wal-Mart Stores 
Inc., while sales growth lagged at Nordstrom Inc. and the Gap Inc.

"Energy pricing is still a concern," said Tom Kopanski, vice president 
of automation at Siemens Energy and Automation, an Atlanta based unit of 
the German electronics giant Siemens AG. But "we are seeing a good level 
of confidence there. If you look at different (business) segments, our 
customers are telling us the demand is there."

Kopanski said his company, which makes electronics for metal cutting 
tools used by car and aircraft makers as well as technology for 
bottlers, has seen demand increase, suggesting consumers are still 
willing to spend.

Kopanski's optimism was shared by other business executives surveyed by 
the Institute for Supply Management, which said its manufacturing index 
stood at 58.1 last month. While that is down slightly from October's 
reading of 59.1, any reading above 50 indicates the sector is expanding. 
November marked the 30th consecutive month of growth in the 
manufacturing segment.

The top industries reporting growth in November included apparel, rubber 
and plastics, electronic components and equipment, tobacco and textiles.

Even prices proved less worrisome to manufacturers last month, despite 
concerns about energy costs, as the survey's prices index dropped to 
74.0 from 84.0.

The Commerce Department reported that personal spending rose 0.2 percent 
in October, down from September's 0.5 percent gain but better than the 
0.5 percent decrease in August when the Gulf Coast region was hit by 
hurricane Katrina. Incomes rose 0.4 percent in October after being 
skewed for two months by the storm's fallout.

Spending for the past three months has slowed considerably after sizable 
gains in June and July when consumers rushed to buy cars from automakers 
offering attractive discounts. General Motors Corp. said its sales fell 
11.3 percent last month, but Toyota Motor Corp.'s car sales rose 9.3 
percent, led by huge increases in sales of its Lexus luxury sedans.

The Labor Department said first-time jobless claims fell by 17,000 last 
week to 320,000 and the four-week moving average of claims is now close 
to a level where it was prior to the hurricanes.

"This is a sign the economy has weathered the shock of the hurricanes 
with flying colors," said Joe Lavorgna, chief U.S. economist at Deutsche 
Bank, who is forecasting that the holiday shopping season for retailers 
will be better than expected.

In other economic news, the Commerce Department said that construction 
spending rose 0.7 percent in October to an all-time high of $1.13 
trillion at a seasonally adjusted annual rate. That followed a more 
modest 0.2 percent September increases and was propelled by gains in 
residential and public construction, both of which rose to record highs. 
Building activity may slow in coming months, however, as rising mortgage 
rates dampen the red-hot housing market

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