Steven Wood Factory Quotations

There is clear and strong evidence that the factory sector is expanding solidly,

Manufacturing is still mired in a deep recession, although the rate of decline may be slowing. The rapid adjustment in reducing inventories will eventually slow and ultimately reverse, giving the factory sector a lift.

Volumes are still strong enough to generate a few new factory jobs amid robust productivity gains. Moreover, capital spending appears to be on track for another solid contribution to third quarter GDP.

With still strong domestic demand and improving international demand, the factory sector is continuing to recover from the sluggishness that resulted from the Asian economic crisis.

While the housing sector is slowing, almost all of its weakness will be offset by the improving factory sector, ... More interest rate hikes will be necessary to slow the economy sufficiently to alleviate the Fed's fears of building inflationary pressures.

The Sept. 11 terrorist attacks seem to have had little impact on the factory sector so far. However, many industries have already reported further production cuts as demand has waned. A more substantial contraction is expected next month.

These data provide some encouraging news for the factory sector, as unwanted inventories are being worked off and shipments have bounced.

These data indicate that wholesale deliveries to retailers are falling quickly, responding to the slowing pace of retail sales. However, deliveries from manufacturers and imports have not slowed as sharply. Unless retail sales revive, wholesalers will continue to cut their orders from manufacturers and imports, maintaining the downward pressure on the factory sector.

The spring slowdown in factory activity, due largely to an inventory adjustment cycle, is now history,

The signals in the manufacturing sector have become quite mixed. The diffusion indices suggest a slowing pace of growth while the factory and durable goods reports indicate an acceleration. In the past, when this type of divergence has occurred, the diffusion indices have usually been the better indicator.