U.S. manufacturing shrank at the slowest pace in 11 months as the Institute for Supply Management’s factory gauge increased from 44.8 to 46.5 in June.  Rising overseas demand for U.S. goods and smaller business cutbacks provide signs the manufacturing sector of the economy is regaining stability.  Even with climbing unemployment rates, expect for the manufacturing sector of the economy to drive positive GDP growth in the third quarter of 2009.

Home Healthcare

President Obama’s healthcare proposal to reduce Medicare payments by 13 billion in 5 years will devastate home healthcare medium-term industry profitability if passed.  As a result, many firms in the middle-to-lower markets will attempt to exit before possible legislation come into effect.  Consolidation in the industry could prove beneficial to firms that remain in business, pending future reimbursement rates.  To see our latest home healthcare Star Report, click here.