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Economy: Tech is leading revival in US manufacturing.

On 5 Dec 05, BusinessWeek reported that Tech is Pumping Life into Manufacturing (you will need a subscription to read it online).

The article says that US manufacturing is on a rebound, and the source of that revival is "advanced technology equipment".  The drivers are increased capital spending and a resurgence in exports as economies in Europe and Japan stabilize, and other Asian economies continue strong demand. Post-hurricane rebuilding and restocking of inventories are also a factor. 

Output for semiconductors, computers, peripherals and communications equipment rose by 25% during the last year, the fastest in 5 years. US investment in new hardware and software is expected to continue to drive demand in 2006.

Great news for your business in the US, and for those selling into the US. But better growth prospects also means higher interest rates and potential skills shortages.  The US trade deficit will remain due to high oil prices and continued demand for imports, although the rest of the world seems happy to finance it at the moment.  Don't you just love the American consumer? Looks like the USD will weaken slowly. Your feelings on the USD will depend on your business.

Bottom Line: Read the BusinessWeek article, I can't do it justice. Learn about and keep an eye on the economy, it matters to your business.

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