Global Manufacturing Suffers Uneven Recovery

On Thursday, reports revealed that manufacturing in America grew less than had been forecasted in February with orders slowing down, resulting in a slowing industry than had been powering the two-year expansion. According to Bloomberg, the Institute for Supply Management's factory index dropped to 52.4 from 54.1 in January. The group said that readings over 50 show growth. There was little change in household purchases adjusted for prices for the third consecutive month in January. There was little change also in the ISM's U.S. figures for the production index, with the group's new orders measure easing to 54.9 from 57.6. Meanwhile, the gauge of export orders climbed. However uneven, manufacturing is recovering following the earthquake in Japan. “For many products, demand has been above our ability to produce,” Mike DeWalt, director of investor relations at Caterpillar Inc. (CAT), said on a Jan. 26 conference call with analysts. “We have invested in Caterpillar factories in the United States and around the world to increase production.”