This week’s blog features good news for the manufacturing industry here in the United States.  Airbus has announced it will build an assembly plant in Mobile, Alabama. We also take a look at the recent action by Europeans to control the debt crisis in Spain.  Our next article discusses the possibility of further quantitative easing by the Federal Reserve this summer.  Finally, there is an article about President Obama’s proposal to extend tax cuts for those families earning less than $250,000.

Bright Spot for U.S. Manufacturing – Airbus, the subsidiary of the European aerospace company EADS, plans to build an assembly plant in Mobile, Alabama.  This speaks to the improved competitiveness of U.S. manufacturing, now offering access to skilled labor, falling unit labor costs and greater ease of doing business.

Eurozone Gives Spain an Extra Year to Reduce Deficit – On Tuesday, the Eurozone Ministers delayed until 2014 Spain’s deadline to slash its budget deficit to 3% of gross domestic product.  The ministers hope to prevent the Eurozone’s fourth largest economy from needing a full state bailout.

Top Federal Reserve Officials Discuss More Quantitative Easing – Three Federal Reserve officials said the central bank should do more to stimulate economic growth here in the U.S. They are laying the groundwork for a round of bond purchases, referred to as Quantitative Easing.  One of their goals is to boost asset prices, including those of stocks and commodities.

Obama’s Proposed Tax Cut Extension For Those Earning Less Than $250,000– President Obama has proposed extending for one year the Bush Era Tax Cuts for those earning $250,000 or less per year.  We believe this is just the start of the debate and no action will be taken until December at the earliest.

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day and Bill W. Ennis