Factory Orders Jump - More Good News

 I mentioned in my last post that manufacturing seemed to be improving.  Today, the WSJ posted an article about the jump in factory orders. Although most agree that the economy is not healthy (not yet!), it's certainly recovering. It may be a slow recovery - but a recovery nonetheless.

Even though we are in a recovery, getting conventional  business financing is still pretty hard. Most institutions are being extremely cautious and only making business loans very very selectively. Because of this, demand for alternatives like purchase order financing will remain strong. Most purchase order financing companies are comfortable taking on higher risks than conventional financing institutions.

Also, purchase order financing is tied to consumer spending. This is because many retail suppliers who import goods, use purchase order funding.  And, consumers are still spending a large portion of their incomes. Here is a post from the Planet Money blog about consumers are not saving a lot (thus, they are spending)

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