Based upon the latest information released from First Research, momentum continues to build across the manufacturing landscape. Although various parts of the country are experiencing a variety of challenges, this improvement can be seen as continuing evidence that we are recovering slowly.
Keeping in mind that manufacturing covers a wide variety of industries and companies, First Research reports the following:
- Total manufacturers’ shipments, which indicates manufacturing sector activity, rose 10.1 percent in the first eight months of 2010 as compared to the same period in 2009;
- US shipments of durable manufactured goods rose more than 8 percent in the first seven months of 2010 compared to the same period in 2009, and new orders for durable goods rose nearly 16 percent during the same period;
- Shipments of primary metals, an indicator of demand for other manufacturing, increased nearly 37 percent and new orders for primary metals grew by more than 43 percent;
- According to the Institute for Supply Management (ISM), US manufacturing growth continued for the 13th consecutive month. Leading the way was primary metals, apparel, leather, transportation equipment, fabricated metals, and electrical equipment.
As the world continues to develop additional manufacturing capacity and resources, there will be additional challenges to face in the future. The US economy is the most agile in the world, and this new information is an indication that the manufacturing sector will continue to be a major force in going forward.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.