More Green Sprouts for Manufacturing

While the manufacturing sector remains depressed, promising signs continue to emerge that we may be seeing the beginning of a turn around. The most recent sign is that the Commerce Department's report of May durable good orders shows promise in some areas. Orders rose 1.8 percent in May -- the second month in a row suggesting a positive trend.

According to the Associated Press, "Orders for non-defense capital goods, a key proxy for business investment plans, jumped 4.8 percent, the biggest increase since September 2004. That could signal that businesses have stopped trimming their investment spending."

The AP also reports that orders for machinery rose 7.7 percent, while demand for computers and related products surged 9.4 percent last month. Vehicle orders were down, in large part because of the continuing problems in the auto industry.

While this does not mean that the recovery is upon us, it does suggest some glimmers of hope.