Is the recession ending?  Is this the beginning of the industrial real estate recovery? The latest manufacturing figures indicate expansion as new customer orders jumped to a level not seen since late 2004.

The Institute for Supply Management (ISM), a trade group of purchasing executives, showed in a report the highest number for its manufacturing index since June 2007.  

The report says, “Its index rose to 52.9 in August, from 48.9 in July – the first reading above 50 since January 2008. Analysts polled by Thomson Reuters on the other hand, had expected a reading of 50.5.  New orders jumped nearly 10 percentage points to 64.9 in August, their highest level since December 2004. With strong new orders for two straight months, production should grow at reasonable rates for the rest of the year, said Norbert Ore, chair of ISM’s manufacturing survey”.

This is a good sign for the office and industrial properties sector.  As manufacturing grows, demand for industrial and office space follows suit. What are your predictions?

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Alex Zylberglait provides commercial real estate investment advisory as well as research, estate planning, asset allocation, valuation, financing, special assets services, transaction advisory and commercial property acquisition and disposition services.

One Response to “U.S. Manufacturing Sector Grew in August for the First Time in 19 Months”

1. M. Johnson says:

   September 7, 2009 at 8:03 pm

   This is good news. I predict that the commercial and industrial real estate will bounce back between late 2010 and 2011

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