US Manufacturing Industry Gains Strength

Analysts predicted that the US manufacturing industry will experience a higher domestic demand that is expected to last for the next coming months despite some drawbacks the economy has experienced such as the increase rate of jobless claims.

Washington: The US manufacturing industry is expected to remain strong this April and for the next coming months as factories around the country are increasing their productions and expecting to rebuild their inventories, according to the latest forecast.

Analysts said the “increased activities in the manufacturing sector will promote economic recovery at a trend faster than the previous expectations”. However, they warned that the recovery will only happen if the government will pass fiscal and monetary policies that will promote economic activities.

Recently, the US Federal Reserve has released a survey showing that industrial production increased by 0.1 percent while the manufacturing output has jumped by 0.9 percent last month. Experts attributed this development to government stimulus and low interest rates that urged business to get credit loans.

And because of the improving trend, analysts predicted that the domestic product growth will increase at an annual rate of 3 percent from 2 percent last year, adding that the US economy will experience more growth in the second quarter.

Meanwhile, the manufacturing industry is also enjoying stronger foreign demand that may result to more hiring of workers.

Despite the significant growth in the domestic and foreign demand, the economy has experienced drawback as the unemployment claims increase last week to more than 480,000. However, government officials said the spike of jobless benefits was not caused by economic factors but a normal trend that usually happens after a holiday.

    Comment

    (All the above fields are required.)