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U.S. Manufacturing Sector Grows in November

Posted 1:47 PM by

Multiple sources have shown growth in the U.S. manufacturing sector during the month of November. In fact, some of theses sources note that the manufacturing sector grew faster in November than October. Either way, signs of growth are encouraging given the current economic state.

  • Christopher Rugaber writes for the AP, "Factories are producing more. Construction is growing. Americans are buying more cars. The holiday shopping season is off to a strong start. Normally, all that would suggest a bright outlook for the economy. Problem is, employers still aren't hiring much, the number of people seeking unemployment benefits remains high and Europe's debt crisis poses a grave threat to the future."
  • Josh Mitchell reports in the Wall Street Journal that the U.S. was just one of a few large economies where manufacturing grew faster in November than in October. In the U.S., the ISM index rose to 52.7 in November from 50.8 in the previous month. A reading above 50.0 indicates the sector is expanding.
  • BBC News reports, "According to the ISM report, manufacturing sectors that reported growth included textiles, electronics, and food and drinks. Chemicals, transport equipment and machinery were among sectors that contracted."

  • Finally, Bob Willis reports in Bloomberg News, "Corporate purchases of new equipment, export demand, stronger consumer spending during the holidays and leaner inventories lay the groundwork for a pickup in production. At the same time, risk of recession in Europe may restrain US manufacturing, the industry that spurred the recovery."

About the Author

Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group as well as being a member of the Not-for-Profit and Governmental Services Groups. Justin works with clients to help them avoid risk and maximize efficiencies by keeping an eye on their bottom line and helping ensure accurate financial reporting. Connect with him on LinkedIn.

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