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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Improvements in Manufacturing

 This is a very short post. Both Caterpillar and Whirlpool delivered strong results, according to the WSJ. The article quotes an executive saying that during the crisis they saw demand plummet, then flatten and now it seems to be going up. Although two companies don't make an industry, this may be a bellwether of things to come.

It seems that lately we have seen a growing crop of good news about business. Let's hope this continues.

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