The U.S. Economy is Picking Up

The New York Times and Bloomberg report that business activity in the United States rose more than forecasted in August, adding to signs that the economy is improving.

The Institute for Supply Management – Chicago said this week that its business barometer increased to 50, the highest level since September 2008. This is up from 43.4 in July. Fifty is the dividing line between contraction and expansion. Wall Street economists surveyed by Bloomberg News forecasted the index would rise to only 48 with estimates ranging from 46 to 52.5. Economists watch the Chicago index to gauge overall manufacturing, which makes up about 12-percent of the economy.

Additional ISM-Chicago numbers report that the new orders gauge climbed to 52.5, the highest level in a year and up from 48 in July. The production index rose to 52.9, up from 43.3.

Despite continued cautionary reminders from the Federal Reserve, these reports show business is picking up steam and suggest that the economy is finally breaking free of its deep recession. These numbers are yet a further indication that the U.S. economy is starting to improve.

Read the full Reuters article in the New York Times.
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