Warren Buffett's holding company, Berkshire Hathaway, owns a variety of "meat and potatoes" companies, from furniture to utility to railroads. Thus Warren Buffet has a unique perch from which to view the economy.
Here's what he said yesterday:
Based on the performance of his companies, he said there has been a 'big pick-up' in manufacturing this year, although it's not as productive as it was three years ago. He believes the retail market in the US has not picked up as much yet as manufacturing, but the sale of luxury goods is improving. Overall, he pointed out the US economy has picked up and is set for a rapid 'V-shaped' recovery: 'There was a lot of strength in March and April. It won't be translated into huge changes in unemployment soon, but the economy is starting to move.'
Manufacturing data from yesterday and today bear that out.