Economic Reports Paint Clouded Picture

Two economic reports released Friday on manufacturing and consumer confidence from the Midwest showed divergent views of the U.S. economy.

The Institute for Supply Management’s Chicago factory index rose to 56 in January from a revised 51.7 in December, indicating more rapid growth in the manufacturing sector in the heavily industrial Midwest.

Also on Friday, the University of Michigan said in its final revision that its consumer sentiment index fell in January to 82.4. Previously, the university had said its index read 83.7. Both figures were down from the 86.7 figure the index posted in December.

For the ISM figure, any number over 50 shows growth in the manufacturing sector. The larger the number, the faster the rate of growth.

The trucking industry relies on manufacturing for much of its business, so the increased growth is encouraging, but the decline in confidence – which often drives consumer spending – can signal weaker times ahead for the industry.

Another economic report, this one by the Commerce Department, said that consumer spending rose 0.9% and personal incomes rose 0.4% in December.

The spending figure was helped by sales of cars and other durable goods, Commerce said, which surged after retailers used discount pricing and no-interest financing to lure consumers to their showrooms.