Wednesday morning we got signs of animal spirits stirring among consumers, and now, there is mounting evidence animal spirits are coming to life in the business world as well.
Yesterday's Empire States Manufacturing Index report came in at its highest level since September 2014. At an 18.7 reading, general business conditions have climbed greatly from the low reading of -5.5 back in October 2016.
Empire Manufacturing Components
All aspects of the report were encouraging suggesting a major uptick in demand. Prices received are keeping pace with prices paid, which is critical. The lone sore spot is employment, which only edged up fractionally, but maybe the big gain in workweek presages more work and higher wages.
|
Empire Manufacturing Components |
January |
February |
|
General Business |
6.5 |
18.7 |
|
New Orders |
3.1 |
13.5 |
|
Shipments |
7.3 |
18.2 |
|
Prices Paid |
36.1 |
37.8 |
|
Prices Received |
17.6 |
19.4 |
|
Employment |
-1.7 |
2.0 |
|
Workweek |
-4.2 |
4.1 |
Small Business Barometer
Reported yesterday by the NFIB, small business optimism is exploding, and while the most recent report saw the pace cool, its evident these company are more excited than before the Great Recession began.
Key components of the report underscore the urgency and need for small businesses to now put their money where their collective mouths are.
Outlook for expansion hasn’t been this high in years.
Sales expectation have been coming on, but expectations for the next three months has gone parabolic.
With expansion and sales expanding, employment would naturally improve as well.
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