50-0 FILES (via John Resnick):

Up in Smoke Stacks: The old economy is on fire. (Lawrence Kudlow, 6/.02/04, National Review)

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. [...]

Election-year battleground states in the Midwest industrial heartland are reporting significantly lower unemployment rates compared to one year ago, according to the U.S. Bureau of Labor Statistics. In April, Michigan registered a 6 percent jobless rate compared to 7.2 percent in April 2003. Ohio’s jobless rate fell to 5.8 percent from 6.2 percent. Pennsylvania’s dropped to 4.9 percent from 5.4 percent. West Virginia reported 5.4 percent from 6.6 percent a year earlier. Missouri’s jobless tally dropped to 4.5 percent from 5.5 percent.

In view of the political significance of these states, it’s surprising that administration officials are not loudly commenting on the remarkable ISM manufacturing report, including its sensitive jobs component. Did anyone say outsourcing? Did anyone say “hollowed out”? The naysaying is nonsense. The ISM numbers are consistent with 7.3 percent breakneck growth of gross domestic product.