WASHINGTON — Factories are cranking up production, anticipating greater spending by consumers and businesses in 2011. Tax cuts will give people more money to buy cars, computers and electronic goods, and provide incentives for businesses to invest in equipment.
Manufacturing activity has expanded in every month since the recession ended 1 1/2 years ago. The big difference now is that growth is being driven by higher sales and more confident consumers. Steady hiring is likely to follow.
Economists caution that it will be enough only to chip away at the 9.8 percent unemployment rate this year. Still, they expect it will give the economy a shot of momentum. The latest sign came Monday when the Institute for Supply Management said the manufacturing sector expanded for the 17th straight month in December.
The trade group of purchasing managers said its index of manufacturing business activity rose to a seven- month high.
The Associated Press; Getty Images photo
