After seeing a few months of slight contraction, U.S. manufacturing has rebounded with its second straight month of renewed growth in October. The Manufacturing ISM Report On Business also reported that the overall economy grew for the 41st consecutive month. An increase in new orders was a big part of this growth, and all indications are pointing toward another up tick in hiring to support this positive trend in the near future. In their report on unemployment, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) said that the unemployment rate stayed essentially unchanged at 7.9 percent for October. They also said that at this point Hurricane Sandy has had no real effect on the unemployment numbers, which is a good sign for now.
The elections are next week and President Obama will face voters with the highest unemployment rate of any incumbent since Franklin Roosevelt. Even a little good news on the domestic economy may be too much for him to overcome. The next big stressor is whether or not Congress will reach a budget deal before January. The fear is that if lawmakers can’t reach an agreement, sharp tax increases and spending cuts will take effect next year and possibly trigger another recession.