Manufacturing & Chemicals

Ge released its chemical production survey. Here is the report:

A chemicals and plastics rebound would generally precede a manufacturing rebound, since these are the raw materials that go into production.

Some good news, chemical production is up over the previous quarter as chemical prices have risen off rock bottom lows. Some bad news, chemical production is still lower than levels seen at this same time last year.

This coincides with the recent announcement of an uptick in the PMI to 52.9, signaling that the manufacturing sector is expanding, after contracting for the past 18 months.
Most of the increase in the PMI has been due to an increase in prices, which is taken as a sign of increasing demand. There was also an increase in new orders, finally.

Here is the release for this months PMI.

Some take aways:
Production is picking up as demand [for] orders is being accelerated." (Nonmetallic Mineral Products)
"Demand from automotive manufacturers increasing thanks to 'Cash for Clunkers.'" (Fabricated Metal Products)
"In addition to improved business come the complications of a supply chain drained of inventory." (Paper Products)
"The sudden increase in customer demand, plus the low inventories held at services centers, is causing a shortage in the supply of raw steel." (Transportation Equipment)
"[It] appears customers' inventories are getting low, and they are cautiously placing orders." (Apparel, Leather & Allied Products)