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Although there are significant downside risks from the European financial crisis and additional fiscal tightening in early 2012, right now the U.S. data suggests continued sluggish growth …
• From the Kansas City Fed: Growth in Manufacturing Activity Eased Slightly
The Federal Reserve Bank of Kansas City released the November Manufacturing Survey today. According to Chad Wilkerson, vice president and economist at the Federal Reserve Bank of Kansas City, the survey revealed that growth in Tenth District manufacturing activity eased slightly in November, but expectations for future months remained relatively solid.
“Factory activity in the region grew slightly slower in November than in the previous two months, and price pressures eased a bit,” said Wilkerson. “But capital spending plans were generally solid, and many firms planned to add workers in coming months as well.”
The month-over-month composite index was 4 in November, down from 8 in October and 6 in September … The production and shipments indexes decreased to 0, and the new orders and order backlog indexes were negative. The employment index dropped to its lowest level of the year but remained slightly positive, and the new orders for exports index moderated slightly.
In general the regional manufacturing surveys have indicated sluggish growth in November.
• From Truecare.com: Highest SAAR for New Vehicle Sales Since Cash for Clunkers
For November 2011, new light vehicle sales in the U.S. (including fleet) is expected to be 972,712 units, up 11.5 percent from November 2010 and down 4.7 percent from October 2011 (on an unadjusted basis) … The November 2011 forecast translates into a Seasonally Adjusted Annualized Rate (SAAR) of 13.3 million new car sales, up from 13.2 million in October 2011 and up from 12.3 million in November 2010.
“We’ve seen six straight months of year over year gains for new vehicle sales, which shows positive momentum for the auto industry, ” said Jesse Toprak, Vice President of Industry Trends and Insights for TrueCar.com. “There is a strong possibility that we could reach a 14 million SAAR next month.“
CalculatedRisk @ November 23, 2011