Two more signs of economic recovery emerged today with positive reports about the nation's housing market and its industrial strength.
Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of Pending Home Sales Index since its formation in 2001, according to the National Association of Realtors (NAR).
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008, when it was 87.1.  The index is at the highest level since June 2007, when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. "The recovery is broad-based across many parts of the country.  Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit," he said.
"Other buyers are taking advantage of low home values before prices turn higher.  Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family's monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable," Yun said.
The NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.  Buyers have little time to act because they must complete the transaction by Nov. 30 to qualify for the credit. Unless extended, contracts signed but not completed by that date will not be eligible - it is taking approximately two months to complete home sales in the current market.
NAR president Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said Congress needs to keep the momentum going.
"Even with a good recovery taking place, the market is not yet back to normal. With a gradual absorption of inventory, we are on the cusp of a general stabilization in home prices,” McMillan said. "To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we're encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences. The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy."
Meanwhile, conditions for the nation's manufacturers expanded for the first time in 19 months in August, the Institute for Supply Management reported today. The ISM index rose to 52.9 percent in August from 48.9 percent in July. This is the first time the index has been above the breakeven point since January 2008.
Readings over 50 percent indicate growth.
The Milwaukee area economy also is showing signs of recovery, according to the latest Business Survey of the Institute For Supply Management-Milwaukee. The seasonally adjusted Milwaukee Index increased 11 points to 56 this month. New orders received increased 14 points to 59. Production rose 11 points to 56. Backlog increased 13 points to 51. Supplier lead times declined eight points to 47.
The positive economic data does not always translate into gains on the stock market. September historically is the worst month of the year. That trend rang true this morning on the first day of the month.
Local stocks in the BizTimes Stock Index could not escape today's sharp mid-day reversal. The largest local decliners this morning were Manpower Inc. (down $1.10 to $50.63) and Ladish Co. (down 85 cents to $13.79). The largest local advancers this morning were Bank Mutual Corp. (up 16 cents to $8.92) and Journal Communications Inc. (up 5 cents to $3.86).

Mercury Marine officials and leaders of the International Association of Machinists and Aerospace Workers Midwest Territory are expected to meet in the next 24 hours, although both sides are being careful about not disclosing what will be discussed at the meeting.
The company, which previously said it was holding firm to its contract deadline that passed at midnight Saturday and would begin the process of shifting 850 manufacturing jobs from Fond du Lac to Stillwater, Okla., said it will "meet and talk" with the union.
"In light of the uncertainty surrounding the voting by Mercury employees on the company's 'best and final' offer made earlier to the International Association of Machinists and Aerospace Workers, Mercury and the IAM Midwest Territory have agreed to meet to bring clarity to the communications regarding the unchanged 'best and final' proposal," the company said in a prepared statement.
Asked when the meeting will take place, company spokesman Steve Fleming told BizTimes this morning, "I'm sure it's soon. I do not know if it's today or tomorrow … I just know that Mercury Marine representatives and (IAM) Midwest representatives are going to get together to talk."
Fleming declined to speculate if the discussion could lead to the reopening of negotiations.
One source close to the discussions, who asked not to be identified, told BizTimes, "It may not be over yet," referring to Fond du Lac's chances of retaining the union jobs.
That prospect could be sweetened if Fond du Lac County enacts a proposed county sales tax that could raise $6 million annually and enable county officials to implement an aggressive economic development strategy
Union members originally overwhelmingly rejected the company's offer. Union members tried to initiate a second vote late Saturday night, but that vote was cancelled Monday after the company said it would not extend its deadline for the union to accept its offer.
For more coverage, read BizTimes Milwaukee's daily roundup of headlines from newspapers across the state at www.biztimes.com/#news.

The Milwaukee Common Council approved the city's purchase of 84 acres of the former 140 acres Tower Automotive site and about $30 million in planned improvements to the property this morning.
The project will come with a total price tag of about $34.5 million, which includes $4.5 in property acquisition.
The site, located in the central city's 30th Street Industrial Corridor, is bounded roughly by West Capitol Drive, the Soo Line railroad tracks, West Townsend Street and North 27th Street.
City officials want to clean up the property and prepare it for eventual redevelopment. They hope to attract 700 to 1,000 jobs to the site.
The project is being paid for through a $15.6 million tax incremental financing district, $10 million in city funds, $2.1 million in credits from We Energies and about $6.7 million in grants.
About $18.2 million will be spent on demolition of existing buildings and environmental remediation, according to a city feasibility study. Another $4.4 million will be spent on improvements to infrastructure, such as new streets, sewer and water lines and other utilities.
City officials said previously that the demolition and remediation work could take at least two years. They eventually hope to develop a business park similar to Milwaukee's Menomonee Valley on the property.
"The city is taking on a significant challenge with the acquisition of this site," Milwaukee Mayor Tom Barrett said previously. "In the long-run, cleaning up this site will put us in a better position to attract and grow a variety of businesses at one of the largest former industrial properties in Milwaukee. The longer we wait to take this on, the more expensive the clean-up will be."
Milwaukee Alderman Ashanti Hamilton, whose district includes a portion of the Tower property, said the city needs to finish environmental testing at the site before demolition, site improvement or sales can begin. However, he believes the site has good potential for future development.
"Interest is high and people are excited. It's a very marketable site, a high profile site in a densely populated area," he said.
While the Tower site doesn't have the easy highway access that the Menomonee Valley does, Hamilton said its central location could help attract redevelopment.
"The (Menomonee) Valley is a valley - it's kind of removed from the neighborhood and set off on its own, which is a benefit for many businesses," he said. "This area is dead smack in the heart of the city and there are neighborhoods surrounding the site. There are lot of people impacted by it and involved in it. It's easy to walk to work and have a sense of ownership of the site."
The city hopes to attract "green" technology firms to the Tower site when redevelopment begins, Hamilton said.
"We want this to be clean industry, not necessarily specifically, but definitely as a priority," he said.

Rockwell Automation Inc. today announced its support of President Barack Obama's decision to create a position to steer U.S. manufacturing policy, and the Milwaukee company plans to conduct a press briefing to rally federal support for research to develop smarter, safer and more sustainable manufacturing.
"American industry needs a transformation unlike any other in its history," said Keith Nosbusch, chairman and chief executive officer of Rockwell Automation. "Innovation must be a high priority to maintain our nation's current but very vulnerable leadership as the world's largest manufacturer."
Obama is working on final plans to create a new position that would allow the White House to pursue policies that would help American manufacturers.
Rockwell Automation believes that federal policy will be critical in encouraging American manufacturers to embrace the latest generation of "smart" technology that saves energy while allowing manufacturers to produce safer products with much greater efficiency.
Nosbusch said, "If the U.S. government does not support a comprehensive U.S. industrial strategy for competitiveness that encourages U.S. factories to invest and innovate, then American manufacturers will find themselves squeezed between low costs in developing countries and highly-efficient manufacturing in other developed countries."
Rockwell Automation is organizing a press briefing to take place on Wednesday, Sept. 9, at the National Press Club in Washington, D.C. In addition to Nosbusch, the scheduled speakers include: Emily DeRocco, president, the Manufacturing Institute and senior vice president of the National Association of Manufacturers; R. Neal Elliott, associate director of research, American Council for an Energy-Efficient Economy; Evan Gaddis, president and CEO, National Electrical Manufacturers Association; and Tom Duesterberg, president and CEO, Manufacturers Alliance/MAPI.

A judge in a Milwaukee County Circuit Court judge has ruled that a class action lawsuit brought against Extendicare Health Services Inc., Extendicare Homes Inc. and other subsidiaries of Extendicare Real Estate Investment Trust (REIT), was improper and ordered the case dismissed in its entirety.
The lawsuit was originally filed on Nov. 14, 2008, in Milwaukee County Circuit Court as a copy cat lawsuit to two other lawsuits that were similarly dismissed by federal courts in Washington and Minnesota. Like those, the suit asserted a claim under a state consumer protection statute and was premised upon an allegation that Extendicare had misrepresented the quality of its services to the residents of its Wisconsin skilled nursing facilities. The plaintiff brought the action on behalf of all current and former residents for the period 2005 through 2008.
Judge Dennis Moroney rejected the class action claim, and like the federal court in Minnesota, held that that the plaintiffs' allegations were too general and unspecific to serve as the basis for a claim. Moroney further prohibited the plaintiffs' attorneys from attempting to re-file the lawsuit with amended allegations.
Extendicare operates 264 senior care centers in North America with a combined capacity for 29,500 residents.

Associated Banc-Corp announced that Mark Sander has been named executive vice president of commercial banking for the Green Bay-based bank.
Sander brings more than 25 years of banking experience to Associated. Most recently, he held the position of commercial banking executive at Bank of America, where he was responsible for the six-state Midwest region. Previously, he held a number of leadership positions in commercial banking at LaSalle Bank NA, including corporate executive vice president.
"Mark's skills and experience make him an ideal choice for this role," said Associated Banc-Corp chairman and chief executive officer Paul Beideman, who recently announced he will retire in 2010. "His commercial banking experience and regional contacts, coupled with his overall management expertise, will be a tremendous asset for Associated Bank."
Sander will report directly to Beideman.

Franklin-based Vuance Ltd., a provider of innovative radio frequency verification solutions, today reported a second quarter net loss of $1.8 million, or 33 cents per share, which was an improvement over a loss of $5.5 million, or $1.07 per share, in the same period a year ago.
The company's revenues for the quarter ended June 30, decreased 30.9 percent to $3.7 million from $5.3 million a year earlier. The decrease was largely driven by a decrease in revenues from an airport security project that was nearly completed.
The company also announced a five-year project worth approximately $5 million to supply and assist in the programming of a new integrated security system based on Vuance's proprietary Managed Automated Security Controls (MASC) system to protect the facilities for Allens Inc. a privately held, family-owned company that grows and packs vegetables under 11 brand names.
Eyal Tuchman, chief executive officer of Vuance, said, "Demand for our expertise remained strong across our entire business, with particular strength in government and public safety sectors. We are active in bidding projects financed by government funds, and believe these projects will become revenue-generating beginning in the second half of this year and throughout 2010. Excluding sales related to the airport in Eastern Europe, revenues across our business increased both sequentially and year-over-year."

WisconsinEye service to Time Warner Cable in southeastern Wisconsin ended at midnight Monday after the two companies could not agree on terms.
Chris Long, president and chief executive officer of WisconsinEye, said the private, nonprofit broadcaster has provided its program signal to Time Warner Cable free of charge for more than two years under an interim agreement.
However, WisconsinEye receives no state government funding to support its gavel-to-gavel coverage of the state legislature and other civic programming. Earned revenue from commercial distributors was always a key part of the broadcaster's business plan.
A recent, long-term distribution agreement with Charter Communications triggered WisconsinEye's obligation under the terms of its licenses with the state, Long said. Absent a similar agreement with Time Warner, the broadcaster has no choice but to discontinue service to Time Warner.
"WisconsinEye's licenses with the state require us to offer our signal on equal terms and on a nondiscriminatory and nonexclusionary basis," Long said. "That makes it impossible for us to continue to provide our programming and signal to Time Warner until they sign the same sort of agreement we have with Charter Cable."
Representatives from both WisconsinEye and Time Warner have been in discussion throughout the summer, but failed to reach an agreement in time to avoid the required termination of service.
"We regret having to take this action," Long said. "Our job is to provide the citizens of Wisconsin with a window on their government and our state's public life, including the rich variety of civic activity in the communities served by Time Warner Cable. Time Warner's decision shuts that window for their subscribers and we can only hope that upon reflection they will decide to continue working with us so that the window can be re-opened."
WisconsinEye public affairs coverage still available to the public at www.wiseye.org.

This week's edition of the Alliance National Business Report, an exclusive collection of headlines from award-winning local business publications throughout the nation, is available at www.bizpubs.org/headlines.asp. Readers of BizTimes Milwaukee can search the national headlines for news in their industries of interest.

Banks across the nation lost a combined $3.7 billion in the second quarter, compared with a combined profit of $4.8 billion in the same period a year ago. Many Wisconsin banks also sustained losses. Read more in this week's edition of the BizTimes Money bulletin.

The Federal Deposit Insurance Corp. has added 416 U.S. banks to its list of "Problem Banks." Are you worried about the financial health of your bank? Take today's BizTimes Poll at www.biztimes.com.

Congressional leaders in Washington, D.C., could learn a lot about civility and civics from Wisconsin Reps. Gwen Moore and Paul Ryan, according to BizTimes Milwaukee executive editor Steve Jagler's Milwaukee Biz Blog today.

As a first step in its North American growth strategy, Maysteel LLC announced today it will shut down its fabrication plant in Menomonee Falls, eliminating about 190 jobs, and will shift production to North Carolina and Racine.
Maysteel is acquiring a 160,000-square-foot metal fabrication plant in Creedmoor, N.C., That plant is owned by CMP in Canada.
Maysteel said the acquisition is an integral part of the company's strategy to move closer to existing customers, and it provides Maysteel with a new regional base that will support growth in the Southeast.
In addition, Maysteel announced it will open a new 40,000-square-foot assembly plant in Racine County, where it will employ about 30 people.
About 25 jobs from the Menomonee Falls plant at Patrita Drive will be shifted to other Maysteel facilities. The net impact in Wisconsin will be a loss of 135 jobs for Maysteel. The company will continue to employ about 500 people in Wisconsin and is looking for another location for about 25 employees at a new headquarters in Menomonee Falls. The firm also will continue to maintain its technology center and core fabrication plant in Allenton and its Electric Power Product plan in Menomonee Falls.
The decisions to add plants in Creedmoor and Racine creates redundancies in total capacity, the company said.
"We are confident that our investments to expand to the Southeast and to open a Racine assembly plant will strengthen Maysteel," said John Russell, president and chief executive officer of Maysteel. "At the same time, this has been a difficult and emotional decision for all involved, and we regret the impact this will have on our Patrita Drive employees."
The Patrita Drive plant will close and the Racine County assembly plant will open within the next 120 days.  The company will acquire an existing plant in Racine County, although it has not yet selected the site.
Employees affected at the Patrita Drive facility will be eligible for a severance package that includes severance pay and outplacement services.
Maysteel is a precision manufacturer of custom metal enclosures and assemblies.  Since 1965, Maysteel has been privately owned by the U.S.-based Everett Smith Group, Ltd., which has operations in the United States, United Kingdom, Mexico, South Africa, Argentina and Hungary.

Mercury Marine will give members of the International Association of Machinists and Aerospace Workers Local 1947 one more chance to vote on a new contract proposal before it considers moving 850 production jobs from Fond du Lac to Stillwater, Okla.
Union members originally overwhelmingly rejected the company's offer. Union members tried to initiate a second vote late Saturday night, but that vote was cancelled Monday after the company said it would not extend its deadline for the union to accept its offer.
Company and union officials met again today.
After today's meeting, the union issued the following statement: "Through the efforts of state and local officials, the International Association of Machinists and Aerospace Workers and Mercury Marine have met and prepared a supplement to the contract proposal that was presented to the members of IAM Local 1947 on Aug. 23, 2009. The supplement and the contract proposal will be presented to the IAM Local 1947 membership in a voting process that will take place on Thursday and Friday, Sept. 3rd and 4th, 2009. The supplement contains clarifications of the Aug. 23, 2009 proposal."

Mark Schwabero, president of Mercury Marine, said, "Hundreds of employees expressed a desire to voice their true feelings, and that’s something we can’t ignore. Obviously this is a difficult situation for all employees in Fond du Lac and Stillwater.”
Union members will have until 6 p.m. on Friday to vote for the supplemental offer at the IAMAW hall in Fond du Lac.
Details about the terms of the supplemental contract offer were not disclosed by the company or the union.