The AP (11/16) reports, “After leading the economy out of recession last year and then flagging over the summer, manufacturers might be getting a second wind.” According to the Federal Reserve’s report published on Tuesday, “factories boosted their output in October by the most since July.” The “report follows several other positive readings on the economy, including data released Monday that showed retail sales rose in October by the most in seven months.” Paul Ashworth, an economist at Capital Economics, noted, “After a pretty disappointing summer, the economic recovery might be picking up.”
Business For Auto Suppliers Improving
The Pittsburgh Tribune-Review (11/14, Napsha) reported on the uptick in business for auto industry suppliers. According to James Gillette, an industry analyst at IHS Automotive, “thousands of suppliers…will experience business condition improvements through next year.” The Tribune-Review noted that “big auto suppliers in Western Pennsylvania, such as PPG Industries Inc. and Kennametal Inc., are seeing increases. “Many of these “have benefited from a 40 percent increase in car and light truck production from January through September over the same period a year ago, according to data from Ward’s Automotive Group.” Daniel Gilmore, president of Supply Chain Digest, pointed out that “suppliers that were left standing after the recession ‘are more financially and operationally stronger,’ than before.”
China Expected To Fuel Global Demand For Energy
The New York Times (11/10, Krauss) reports China’s “push for rapid economic development will dominate global energy markets and be the single biggest force in spurring higher oil prices and carbon emissions linked to climate changeover the next quarter-century, the International Energy Agency reported on Tuesday.” But the IEA also said China is”poised to be the driving influence behind the development of renewable energy like wind and solar power, according to the agency’s annual energy outlook.” The agency “predicted that Chinese energy demand would soar 75 percent by 2035, accounting for more than a third of the growth in global consumption. While China today accounts for 17 percent of world demand for energy, it should account for 22 percent in 25 years, at the same time that India and other developing countries also expand their energy use.