February 1, 2011

Cautious Optimism About Manufacturing Increase

Even though U.S. manufacturing unexpectedly accelerated in January, policymakers should adopt cautious optimisim.

While this is certainly not bad news, it is important to keep in mind that industries fluctuate throughout the year, and what is more important is the trend over many quarters rather than just one. This is also just one sector of many.

The bottom line is our economy is still fragile.

It’s not certain if the recent push for exports by the Obama Administration has impacted these numbers. Really, the amount of U.S. exports is not a decision made by the government. It is a decision made by millions of people all over the world who want U.S. goods. What the government can do is try to keep the value of the dollar constant. This will give foreign consumers the confidence they need to purchase.