More Bad News For Democrats

Rather than moving jobs off shore, the American manufacturing sector of the economy is booming.

According to just-released data from the Institute of Supply Management, which tracks the manufacturing sector, new orders, production, order backlogs, export orders and employment were very strong in May. The industrial sector is so strong that the speed of supplier deliveries has hit its highest level since April 1979. This means that firms cannot produce fast enough to meet rising demand, which is why commodity prices continue to climb. As a result, capacity use keeps growing and inventories are still too low in relation to skyrocketing sales.

Meanwhile, new factory hiring has jumped to a 31-year high, the best since 1973. Of more than 400 industrial firms surveyed, 36 percent added workers in May, while just 7 percent had fewer workers. This is another nail in the coffin of the jobless recovery. As the inventory-rebuilding process ratchets up over the next year, expect even more job creation to follow.