2-Sep-2010 11:05 AM

US manufacturing rises to three-month high, concerns remain for economy

US Institute for Supply Management stated (01-Sep-2010) its factory index (a gauge of US manufacturing) unexpectedly rose to a three-month high of 56.3 in Aug-2010 from 55.5 in Jul-2010, marking the 13th consecutive month of growth. Separately, the departing White House Chief Economist, Christina Romer, stated the Obama Administration, concerned about the weakening US recovery, is pushing Congress to approve proposals to stimulate growth in the final two months before congressional elections, commenting: “The only sure fire ways for policy makers to substantially increase aggregate demand in the short run are for the government to spend more and tax less. We should be moving forward on both fronts” (Bloomberg, 01-Sep-2010).