Michael Mandel is having a hard time believing the recent articles that suggest American manufacturing is experiencing a significant recovery. At his blog, Mandel on Innovation and Growth, he breaks down some of the more recent data:
Newly-released data suggest that the manufacturing recession was deeper than previously thought, and the factory recovery has been weaker. On May 13 the Census Bureau issued revised numbers for factory shipments, incorporating the results of the 2009 Annual Survey of Manufacturers. The chart below shows the comparison between the original data and the revised data (three-month moving averages):
The decline in shipments from the second quarter of 2008 to the second quarter of 2009 is now 25%, rather than 22%. And the current level of shipments in the first quarter of 2011 is now 9% below the second quarter of 2008, rather than only 5%. In other words, the new data shows that factory shipments, in dollars, are still well below their peak level.
Read New Manufacturing Data Show Weaker Factory Recovery, Deeper Recession here.
05-16-2011 11:05 AM