Some sustained good news in the manufacturing sector–a bellwether for the economy?

November 2, 2009 at 12:30 pm | Posted in Uncategorized | Leave a comment

Wow, it’s been a while since my last blog entry. Things have been busy at the Region 2000 SBDC. We have seen more and more clients wanting to start a business in Lynchburg and the surrounding areas in the last two months. We are also seeing a lot more financing activity, and projects that were on hold for the last year and now coming back alive. This has been true in all of our areas served–small business is definitely picking up in Lynchburg, and Bedford, Campbell, Amherst, and Appomattox counties here in Virginia. We’ve also seen a lot more activity in terms of business acquisitions. 

I believe the worst of the recession is behind us. Now it’s a matter of employment levels going up in order for economic growth to fully take hold. Even construction and housing seem to have picked up. The manufacturing sector, often the bellwether and predictor for the rest of the economy, seems to be having a sustained recovery.

The Wall Street Journal just reported today that the US factory sector had its 3rd consecutive month of growth in October. (Things started improving in August this year after over two years of declines).  According to the Journal, the manufacturing index rose from 52.6 in September to 55.7 in October.  A reading over 50 indicates expansion.  My small business clients in the manufacturing sector in the Lynchburg area are giving me the same feedback that things have picked up.  The Journal today also reported that construction spending climbed by 0.8% in September and that housing-market activity also posted an increase.  Let’s hope this is a sustained recovery after all!…To be continued…

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