South By North Strategies, Ltd.

Manufacturing In The South Atlantic: June 2012

From the Federal Reserve Bank of Richmond’s latest survey of manufacturing activity in the South Atlantic (District of Columbia, Maryland, North Carolina, South Carolina, Virginia and West Virginia):

Manufacturing activity in the central Atlantic region softened in June, following six months of moderate expansion, according to the Richmond Fed’s latest survey. Looking at the main components of activity, shipments edged into negative territory as growth in new orders experienced notable declines and employment grew at a rate well below May’s pace. Most other indicators also suggested weakening activity. District contacts reported that capacity utilization and vendor lead-time turned negative, while growth in order backlogs exhibited marked weakness. Manufacturers reported that finished goods inventories grew at a much quicker pace, while raw materials were nearly unchanged.
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Despite the moderation in recent activity, assessments of business prospects for the next six months were in line with last month’s readings. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization and capital expenditures would grow at a solid pace.

Around The Dial – June 27, 2012

Economic policy reports, blog postings, and media stories of interest:

• Off the Charts explains the positive impacts of the Recovery Act.
• The PBS NewsHour rounds up all of its recent coverage of Paul Krugman.
• Policy Shop flags the $6.6 trillion retirement gap facing Americans.
• Beat the Press points out more bad economic analysis by political elites.

The Consequences Of Austerity

In a new research brief, the Center for American Progress analyzes the extent to which “austerity is hammering state economies.” The graph below shows how cuts in public spending have slowed private growth rates.

Midweek Humor: Eurozone Edition

This sketch from Monty Python is a reminder that disagreements between Germany and Greece aren’t exactly new.

Around The Dial – June 26, 2012

Economic policy reports, blog postings, and media stories of interest:

• Calculated Risk analyzes the increase in shared households.
• The Economic Policy Institute looks at wealth losses among young families.
• The American Prospect reports on “the state of poverty in America.” 
• The NC Budget & Tax Center graphs the state’s growing jobs gap.