Shares of big manufacturing companies rose after the Instittute for Supply Management said its index showed that factory activity is still expanding, although not as fast as analysts had hoped. Stock indexes started off higher but lost some of the gains later in the day. The market is coming off a surge that brought the Dow Jones average up 10.4% in the 3rd quarted. Eric Thorne, an investment adviser at Bryn Mawr Trust Wealth Management, said that expectations are rising for the economy, that is a good thing and it also means that to drive stocks higher, data needs to show signs of improvement. Both income and spending rose in August. The savings rate climbed and it can be an indication that spending may not climb in the future. About 2 stocks rose for every one that fell.
http://www.msnbc.msn.com/id/39455321/ns/business-stocks_and_economy
I think that it is good that manufacturing indexes showed activity is still expanding, even thought is wasn't as fast as last month it is still good. With the stocks going up it is a sure sign that our economy is improving. But I am not sure whether the economy in our area is improving. It still appears that there is a slump in the housing department because people don't have money to invest in new homes. Also people are with out jobs, which doesn't help when the people don't have money to buy a home, and there are no tell tail signs that we are coming out of the slump. With the recent increase in the markets, hopefully it is just a matter of time before we see the changes in our economy.
No comments:
Post a Comment