Interesting article on manufacturing growth
American manufacturing has generally been in decline for decades, but the nation’s factories have been key to the current economic recovery.
Many analysts predicted manufacturing would fall last month on signs that the global recovery would slow down later this year, but the opposite was true. U.S. manufacturing expanded faster than expected as factories added workers and raised production to restock inventory and respond to demands form markets overseas. The Institute for Supply Management’s factory index rose to a three-month high of 56.3 from 55.5 in July. Most economists predicted it would fall to 52.8 or worse. A reading of more than 50 generally signals growth.
What’s more, the surge in manufacturing has translated to jobs, though growth has been concentrated to mostly temporary employment, Tig Gilliam, Adecco CEO for North America told Fortune last week. Though the latest Labor Department report released last Friday suggested that manufacturing jobs fell more than expected in August, temporary jobs rose 17,000. And Caterpillar (NYSE: CAT – News), the Peoria, Ill.-based maker of construction and mining equipment, has announced it may add up to 9,000 workers globally this year.
Manufacturing, which accounts for about 11% of the U.S. economy, helped pull the nation out of the recession. For the U.S. recovery to continue, it will need to hold up.
Read more at YahooFinance.com