"Manufacturing at Highest Level in Two Decades" - Not.

By JOHN CRUDELE

It's nice of The New York Times to toss the Bush administration a bone by making "Manufacturing at Highest Level in Two Decades" the paper's lead story on Tuesday.

But think about it for a moment: There is no way manufacturing is at its highest level in the last 20 years, not with all the outsourcing American companies are doing to foreign countries.

The Times headline was based on a report by the Institute of Supply Management, which each month surveys only 400 of the nation's manufacturers.

It uses a so-called diffusion index - which means, if the number is over 50, manufacturing is growing; if the index is under 50, there is a contraction.

The index jumped to 62.8 in November, which is the highest reading since 1983 - i.e., in 20 years.

Does that mean that manufacturing is at the highest level in two decades? Nope.

It means that the 400 manufacturers - who still happen to be in business and who answered the ISI survey - are the most optimistic from one month to the next than they've been in 20 years.

Just thought that might deserve one of those famous Times clarifications.

*

Federal Reserve officials are quietly spreading the word that they intend to add massive amounts of liquidity to the banking system over the next year.

In theory, that will keep the economy going and make incumbent politicians very happy - unless one of many nasty consequences occurs.

More on those consequences in another column.

*Please send e-mail to:
jcrudele@nypost.com

http://www.nypost.com/business/12500.htm

The economy isn't any better, but people are being lulled into not caring by this propaganda.

the production is attributed to the ones who are left.. just F'n dirty tricks. How many people were layed off needlessly to ramp p those figures just before Christmas..??