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The Data: Orders Fall, but Manufacturing Rises.
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Manufacturing rose 7.5percentt in January, up from 7.2percentt.
Agriculture declined in relative importance after the war, as manufacturing rose in prominence.
Manufacturing rose on the back of the domestic strength, as yesterday's CBI survey showed.
The purchasing managers' index for manufacturing rose to 51.5 in September from 50.3 in August, beating expectations of a contraction.
But HSBC reckons that labour productivity in manufacturing rose even faster, by 20%, so unit labour costs are still falling.
As standards of manufacturing rose, it became harder for firms to differentiate on quality alone and so to charge a premium price.
She said the number of jobs in construction and manufacturing rose in October, a month when those industries usually cut back.
But a separate report showed manufacturing rose more than expected in May, reflecting an expansion of business activity after a contraction in April.
Also today, the Federal Reserve Bank of Philadelphia said its index of manufacturing rose to 14.7 this month, the first positive reading since November 2000.
The trade group of purchasing executives said its widely followed survey of manufacturing rose to 35.6percentt in January from an upwardly revised 32.9 in December.
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