SAUGATUCK, Mich. – Another analysis is suggesting that there is a measurable pickup in consumer spending.
Robert Genetski, president of ClassicalPrinciples.com and former chief economist at Harris Bank, said the decline in unemployment claims in December and lower housing inventories provide evidence of a potential pickup. “I continue to expect the massive increase in bank reserves – up 25% this year – to provide some boost to spending in 2012. This week’s numbers should provide some clue to the extent of any pickup in activity at year end.”
The ISM survey of manufacturers to be released today will provide the first clue, Genetski shared. “November’s new order component was a strong 56.7. This suggests the overall index for early December could be up to the 55 vicinity.”
Last Thursday’s ISM survey for service companies may also show a small improvement from the reading of 52 in November, observed Genetski. “If both the manufacturing and service indexes are in the vicinity of 55 it would provide an indication the pace of business activity is improving.”
