Is the US manufacturing sector growing, or is it just hype? A report completed by The Institute for Supply Management (ISM) shows that national factory activity reached its highest level since April 2011.
November was the sixth consecutive month of growth in the goods-processing sector since a decrease in May. Growth accelerated following the partial US Government shutdown which limited activity in October.
ISM’s employment index is also showing growth; rising to 56.5 from 53.2 (any number above 50 indicates growth). The index of national factory activity rose from 56.4 to 57.3 – its highest point in over two years. As a result of increased hiring and factory activity, production has also increased from 60.8 to 62.8.
With all signs trending toward growth, the progressive new orders index rose to its highest level since April 2011, jumping from 60.6 to 63.6.
The apparent growth of the manufacturing sector is a repeatedly debated topic among many economists, each argument with valid points. However, it is clear that over the last six months there has been an influx in manufacturing activity and hiring. Whether that trend will play out long term or is short lived is still up for debate.
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