We had good news from two disparate sectors of the economy on Thursday, which may be a positive signal for this recovery. First of all, the manufacturing sector posted surprisingly strong figures in September, with the Institute for Supply Management's business barometer soaring to 60.4. Anything over 50 is considered to indicate expansion. The economists surveyed had expected the number to come in around 55.
Meanwhile, retail stocks posted their biggest quarterly gain since 2003 for the quarter that ended yesterday. The S&P Retail Index was up 19 percent, with the biggest gainers being Liz Claiborne (up 44 percent for the quarter) and the Warnaco Group (up 41 percent).
Those factors probably fueled the mild drop in workers filing new unemployment claims, which dropped by 16 percent last week. None of these figures on its own is the sign of a rip-roaring recovery, but the fact that they're so broad-based gives us reason for cautious optimism.
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