Recently, commodities prices surged. Manufacturers have again started sending in orders and rebuilding their inventories. Optimism on global stock markets and high hopes for economic recovery have driven up commodity prices – especially oil, gold and copper – to the highest levels seen in several months.
Jeffrey Currie, chief economist at , wrote in his report from the beginning of May that a jump in agriculture and energy prices will help the Standard & Poor’s GSCI Enhanced Commodity Index return 19.1 percent over the next year. The measure jumped 16.8 percent last month.
While the U.S. contracted 6.3 percent in the fourth quarter and probably will shrink 2.8 percent this year, according to the median in a Bloomberg survey of 61 economists, commodity prices show that investors and corporate purchasing agents anticipate a rebound will begin later this year.
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