Manufacturing Industry Growth
January 30, 2015
I’ve spoken out many times about how the nation’s manufacturing sector is enjoying a robust revival. Part of it may be caused by reshoring, part of it may be caused by Americans’ confidence in the economy. But regardless, I believe the improvement is real and will be sustained. But now I have some facts to back this up. According to the Federal Reserve on January 16, 2015:
Industrial production decreased 0.1 percent in December after rising 1.3 percent in November. The decrease in December reflected a sharp drop in the output of utilities, as warmer-than-usual temperatures reduced demand for heating; excluding utilities, industrial production rose 0.7 percent. Manufacturing posted a gain of 0.3 percent for its fourth consecutive monthly increase… Total industrial production in December was 4.9 percent above its level of a year earlier. For the fourth quarter of 2014 as a whole, industrial production advanced at an annual rate of 5.6 percent…
And as a summary, Manufacturing output rose 0.3 percent in December and at an annual rate of 5.2 percent in the fourth quarter. Manufacturing output in December was 4.9 percent above its level of a year earlier.
According to Gus Faucher, senior economist at PNC Financial Services Group, “After four years of rocky recovery the U.S. economy is now hitting its stride, with a notable acceleration in growth in recent quarters. And growth should remain good next year, with lower gasoline prices a big plus for consumers.”
Growth of 5% is widely considered as “sizzling.” So, without a huge natural calamity or terrorist attack on American soil, I predict the economy will keep zipping along for at least another two years. And if a Republican is elected president, expect even more improvement in the manufacturing sector.