American Manufacturing May Be on The Rebound
February 26, 2020
Manufacturing at American factories fell in the second half of last year as the global economy slowed and the U.S. and China trade war continued. Now, manufacturing surveys are giving positive signs that the contraction may be over.
New York’s Empire State Manufacturing index surged to 12.9 this month, up more than 8 points from the month before. The component of the survey that tracks shipments is at the highest level since November 2018, and the index for new orders surged to the highest level since 2017.
The manufacturing survey for Philadelphia performed even better, jumping 20 points to 36.7, the highest level in three years.
Of course, these indexes are based on surveys, and American manufacturing still faces headwinds from Boeing’s recent troubles and the growing concern over Coronavirus. The surveys do show, at least, that the fundamentals of American manufacturing are strong.