The Purchasing Industrial Commodity Price Index closed December at 179.8 (100=January 1992), a drop-off of 6.3% from the same month in 2008. More importantly, it generated a full-year index average of 171.7, down 31.1% from the record-high 249.2 in 2008. Prices paid by manufacturing and construction buying groups for raw materials staggered to the finish line in December, sliding 0.1% from November's reading. The energy index in December dropped 2% while chemicals increased 2%, plastics dropped 1%, metals rose 1%, wood products expanded by 10% but pulp and paper products were flat. Interestingly, the overall index has increased somewhat steadily since its low point of 162.9 in May. The second-half rally in commodity prices in 2009 "has been extraordinary" and sets the stage for a recovery in spot-market costs of raw materials in 2010.
Commodity prices were lifted by the revving up of China's industrial activity. Other factors include the beginning of economic recovery in G7 nations-with the U.S. pulling out of its recession in the third quarter-exceptional monetary and fiscal policy stimulus, renewed institutional and sovereign wealth-fund inflows into commodities and investor interest into such "hard assets" as crude oil and precious metals. In 2010, "commodity prices should continue to move higher," Because of ongoing strength in China's economic growth, some re-stocking of basic materials by industrialized nations, continued interest by investors in commodities as an asset and renewed weakness in the U.S. dollar.
Larson Notes & Satire: The U.S. economy will not come roaring back in the coming months, but odds are that by the end of 2010, the tentative and fragile recovery will have evolved into a self-sustaining economic expansion. And with a rebound in industrial production, now forecast by Blue Chip Economic Indicators to rise 3.9%, buyers can expect a rebound in raw materials, commodities and components pricing as next year progresses.
Its 2010 now. A new year, a new decade. You make your way in life and in your business. If you work it right most of you should at least see double digit growth for 2010. Heck shoot the moon and double or triple your company’s size. You could do it! If you are an individual salesperson I would what nothing short of doubling your sales numbers in 2010. Or if you really want to soot the moon triple or go for quadrupling your sales numbers. And if you need help, call on us, more than happy to help make my fiends successful. I’m game, are you?
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