Plus: Manufacturing Outlook Strengthens, Economic Indicators Rise and “Small Business Saturday” Introduced.

GM Launches Largest IPO in U.S. History
After years of turmoil and failure, General Motors Co. pulled off the biggest initial public offering (IPO) in United States history last week, highlighting a massive turnaround for the Detroit automaker and setting the stage for Washington to withdraw from its majority ownership stake in the automaker.

“The stock, which resumed trading under its old ticker, ‘GM,’ closed at $34.19, up 3.6 percent from the offering price of $33 a share,” the Washington Post reports. “Altogether, the company raised $20.1 billion through the IPO, making it the biggest in U.S. history.”

Including an option that would allow underwriters to sell more shares, GM looks set to raise $23.1 billion. Thursday’s IPO saw the U.S. government cut its stake in GM nearly in half, from 66 percent to 37 percent, earning U.S. taxpayers at least $11.7 billion in the process.

The share offering caps an 18-month overhaul of Detroit’s biggest carmaker.

In June 2009, the debt-laden company was forced into government-backed bankruptcy as it borrowed close to $50 billion from taxpayers to stay alive. The new GM, which underwent massive cuts and restructuring, emerged from bankruptcy protection far more quickly than most industry watchers had expected. Last August, the automaker filed long-awaited paperwork in the first formal step toward holding a public stock offering.

Earlier this month, GM posted its third consecutive quarter of profit, bringing in $2 billion. According to the automaker, total year-to-date sales of its core brands are 22 percent higher than they were during a very dismal 2009. GM expects to post solidly profitable results for 2010, its first full-year profit since 2004.

Manufacturing Production to Grow through 2012
The U.S. economy is increasingly shifting away from dependence on consumer spending and housing in favor of growth stimulated by investments and exports, and manufacturing is likely to play a key role in the process, according to the Manufacturers Alliance/MAPI’s latest Quarterly Economic Forecast.

The report projects that inflation-adjusted gross domestic product (GDP) will rise by 2.8 percent in 2010, 2.5 percent in 2011 and 3.2 percent in 2012. As consumers work to de-leverage and drive down debt, credit access is likely to remain tight and there will be a renewed focus on rebuilding lost wealth.

“Faster growth outside of personal consumption expenditures causes a rebalancing of economic resources. Investment in equipment, software and structures is expected to expand,” Daniel J. Meckstroth, the chief economist for the Manufacturers Alliance/MAPI, said in an announcement of the findings. “Another driver of growth is exports. The decline in the value of the dollar and strong growth in emerging economies allows domestic firms to expand foreign sales.”

Manufacturing production is expected to grow by 5.8 percent in 2010, 4 percent in 2011 and 4.9 percent in 2012. Much of the boost in output is likely to come from high-tech manufacturing, which is forecast to increase by 13.6 percent this year, 12.3 percent in 2011 and 14.7 percent in 2012. Expenditures on industrial equipment are also expected to provide major gains, rising 6.9 percent in 2010, 20.2 percent in 2011 and 8.2 percent in 2012.

“A higher level of factory capacity is a trigger for capital investment to repair and replace equipment, especially when corporate profits are at a very high level,” Meckstroth added.

Exports are anticipated to grow by 11.5 percent in 2010, 7.8 percent in 2011 and 8.7 percent in 2012, while imports will increase 13.2 percent in 2010, 6.1 percent in 2011, and 4.5 percent in 2012. However, MAPI forecasts that unemployment will remain high in coming years, dropping to 8.9 percent by 2012.

Leading Economic Indicators Continue Rising
The Conference Board’s leading economic index (LEI) — a forward-looking gauge of U.S. business activity — improved in October, rising 0.5 percent to 111.3 following a 0.5 percent increase in September and a 0.1 percent increase in August. The October results, released last week, indicate that although growth may be slow, it is poised to continue at a steady pace.

“The LEI remains on an upward trend, suggesting the modest economic expansion will continue in the near term,” Ataman Ozyildirim, an economist for The Conference Board, said in an announcement of the findings. “The LEI’s growth has been slowing this year, but gains in the financial components helped its pickup in October.”

Six of the 10 indicators tracked improved last month, led by financial factors, including rising stock prices; an increase in the amount of money in the financial system; and a wide gap between long-term and short-term interest rates, the Associated Press notes.

The Conference Board’s coincident economic index, which measures current business activity through payrolls, incomes, sales and production, increased 0.1 percent after registering no change the previous two months. The lagging indicators index, which is based on business lending, unemployment, service prices and other factors, also rose 0.1 percent in October.

“The reports indicated Federal Reserve efforts to spur growth will yield results in coming months as rising stock prices, near record-low interest rates and an improving job market help Americans repair tattered finances,” Bloomberg News explains.

Introducing Small Biz Saturday
While Black Friday and Cyber Monday support national and online retailers, a newly announced initiative will support the local, independent small businesses that create jobs, boost the economy and build communities. American Express OPEN, along with nearly 20 public and private organizations, has declared the Saturday after Thanksgiving as Small Business Saturday to help raise awareness about the importance of small business to our communities.

“Small Business Saturday is a national movement to inspire all consumers and communities across the country to support their local small businesses,” the Small Business Saturday website states. “Small business is the heartbeat of local communities and the engine of the U.S. economy. Over the past two decades, small businesses created 65 percent of net new jobs. In addition, for every $100 spent in locally owned independent stores, $68 returns to the community through taxes, payroll, and other expenditures.”

Business owners can participate by visiting facebook.com/smallbusinesssaturday, where they’ll find downloadable materials and social media tools to help promote their business and join the initiative. American Express is also offering a $100 Facebook advertising credit to the first 10,000 business owners that sign up through Facebook. Business owners can create a free, personalized, geographically targeted ad that will run on Facebook leading up to Nov. 27.