The rebound in manufacturing showed further signs of promise for the economy in the coming year, according to government data released Tuesday, even as housing, another key driver of the country’s nascent recovery, offered new cause for worry.
Orders at American factories increased in November by more than analysts had expected, the latest evidence that the manufacturing recovery is accelerating. The industrial sector has been ramping up production since July as demand for all sorts of goods has revived and companies have had to crank up assembly lines to replace depleted inventories.
But pending home sales plummeted in November, suggesting the housing sector could weaken as the impact of government policies to support the industry fades. Although housing data are notoriously volatile, the new figures raise the possibility that the sector — where the economic downturn of the past two years started — could have further to fall.
The conflicting signs show the fragility of the expansion as 2010 gets underway. Even positive economic news has come with caveats, and the recovery remains too weak to significantly chip away at the highest jobless rate in a generation.
To read the full article, click here …
