U.S. Manufacture Predicted 3 Months Growth

Manufacturing United States (U.S.) is predicted to increase in February for three months in response to increasing business investment in new equipment and tooling.

According to the median forecast of 81 economists in a Bloomberg survey, a discussion of projected 52.5 for the index of the Institute for Supply Management's factory, having the highest increase in nine months amounted to 53.1 in January. Higher than some other projections are only 50.

Other reports today also showed consumer spending and construction spending rose in January budgets.

Manufacturing such as Applied Materials Inc. (Very) out of the decline of the industry in the second half of 2012 due to a stable foreign markets, auto sales growing up, and companies to boost capital spending.

Further production gains will also be able to complete the rebound in the housing market and help shore up the economy amid a budget dispute in Washington.

"We were expecting a bit of moderation, but it's not indicative of weakening manufacturing," said Gennadily Goldberg, U.S. strategist at TD Securities Inc.. in New York, who forecast estimates match media on Friday (1/3).

Business investment in the future, he added, would be positive. "We've seen some risks from Europe regardless of the table, thus helping manufacturers with export demand. Unfortunately, we continue to be from crisis to crisis in the policy of the future, "he explained.

The Tempe, Arizona-based ISM will release its report at 10.00 local time New York. Estimates of the 50.5 to 54. Index average of 51.7 in 2012 and 55.2 in 2011.

China Manufacture Showed Slower Than Expected

Two of China's manufacturing index showed a slower rate than projected, thus marking negari growing economic recovery could lose steam.

Reports from Nasianl Statistics Agency and the Federation of Logistics and Purchasing in China, the purchasing managers index (PMI) was 50.1 in the official February, the weakest in five months and down from 50.4 in January. Report of a separate index from HSBC Holdings Plc and Market Economics fell to its lowest level in 4 months from 52.3 to 50.4. The discussion above 50 indicates an expantion.

Contraction in manufacturing medium and small industries in the official survey highlighted the problem on China's new government will face when the new government takes over power this month after the annual meeting of parliament.

Li Keqiang, designated as prime minister, faced with the task of getting rebounds sustainable economic growth without inflation and lead to bad credit bank.

"The economy is clearly weak. Official PMI almost line between expansion and contraction, and seasonal factors of the Chinese New Year holiday itself can not explain this, "said Dongming Xie, China economist at Oversea-Chinese Banking Corp. in Singapore, Friday (1/3).

The growth of Chinese manufacturers who softened up to several months and the lowest in February, is also assessed as domestic demand slumped, thus burdening the company has been hit by a slowdown in foreign sales and underscores the economic recovery patchiness.