CCR World Magazine

USA - Manufacturers are starting to replenish their inventories and that’s a clear signal the Great Recession is ending, said the National Association of Credit Management this week.

“The jump in manufacturing was stark and unexpected,” said Chris Kuehl, economist for the Columbia, Md.,-based Maryland-based organization.

Manufacturing at U.S. factories increased in January for the sixth consecutive month, according to the Tempe, Ariz.,-based Arizona-based Institute for Supply Management. “This month’s report provides significant assurance that the manufacturing sector is in recovery,” said Norbert Ore, chairman of the institute.

The credit managers group said new credit applications also are rising, a sign businesses plan to expand.

Kuehl said data suggests “a classic recession exit” —- a pick-up in manufacturing to replace inventories depleted as the economy was falling because fearful managers did not want to get stuck with inventory they could not sell.

“The trillion-dollar question is whether this growth can be maintained throughout the rest of the year,” Kuehl said.

The consensus among economists in San Diego and Riverside counties is that banks must relax their vice grip on lending if business is to expand and power the economy out of the recession.