... and here is why. One of the key presentations given at the NFPA Economic Outlook Conference is by Jim Meil who is the Vice President and Chief Economist at Eaton Corp. He gave an overview of the US and global economy including several key indicators.
One very encouraging report is that the 10 year to 1 year yield recore for Treasuries shows indication of recession any time soon. This is a very reliable indicator. The drop in housing starts is now several years old and while it is not showing signs of optimism, it should not drag the economy down any further.
Shipments of both industrial and mobile machinery are up and appear to be stable. The total shipment of fluid power products in the US has shown a one year increas of 24.7% with a 2011 yearly forcast of plus 14%. Even 2012 is forcasted to show an increase.
Considering how far our markets sunk in the 2008-09 timeframe, a sustained recovery through 2012 is very encouraging to me. Combined with the other presentations given at the EOC, my takeaway is that we need to continue pressing forward to take advantage of an expansion, even if it is single digits.