Factory activities rose in January
TEXT OF INTERVIEW
STEVE CHIOTAKIS: We got word today from the Institute for Supply Management, factory activity rose last month. Economists had predicted the numbers would be flat so the positive reading kinda caught some analysts off-guard.
Joel Nairoff has an economic advisory firm in greater Philadelphia. He’s with us now to talk manufacturing. Good morning.
Joel Nairoff: Good morning. How are you doing, Steve.
CHIOTAKIS: I’m doing well. So talk about these numbers and what they mean for the manufacturing sector. What are we talking about here?
Nairoff: Well, what we’re talking about in this report is a manufacturing sector that looks like it’s really picking up steam. Orders are surging, employment is growing, backlogs are building. We’re beginning to sell things over seas a lot more. Vehicles, high-tech products, furniture — we still do a fairly large amount of. It’s such a strong report indeed I think what you have to do at this point is say, “OK let’s see if there’s follow through on it,” but right now this is a great report.
CHIOTAKIS: What about the biggest picture — economy in general?
Nairoff: Most people still think we’re either in a recession or just barely getting out of it. If manufacturing’s soaring, a lot of the demand maybe coming from the export markets and foreign countries that are growing, but most of that has to be coming from domestic demands. So it says to me that the broader economy is doing better. The key though is to get it growing strongly enough that business have to hire. I think what we’re seeing in the manufacturing sector that that swhich is being flipped, they’re beginning to hire more, and ultimately that’ll spread into the more general economy.
CHIOTAKIS: Joel Nairoff with Nairoff Economic Advisers, just outside of Philadelphia this morning. Joel thanks.
Nairoff: My pleasure.
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