Hope So

By August 21, 2009Economy

From The Globe and Mail, Toronto, “Auto sector leads pack as U.S. factories show signs of life“:

The U.S. economy has found an unexpected bright spot: manufacturing.

Aided by a rebound in European and Asian economies, a depreciating U.S. dollar that makes exports more attractive and record low inventories, the country’s factory sector is slowly returning to life, and has become an unlikely, if unreliable, standard bearer for the nascent U.S. recovery – even in the long-blighted Northeast.

Autos are leading the way, with the cash-for-clunkers program sending consumers into showrooms, depleting inventories and prompting renewed activity at plants across the country.

Yes, but even supporters of the soon-to-be-discontinued cash for clunkers program acknowledge that it probably shifted demand forward rather than stimulate new demand.

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