Published By : 03 Jun 2015 |Published By : QYRESEARCH
First time in the past six months, the growth of the manufacturing sector in the U.S. has showed positive sign. The manufacturing index registered the highest reading since February, and rose to 52.8 last month. The manufacturing sector has been fuelled by new orders coming in and the companies hiring more manpower. Increased factory activity points towards the growing economy, which had slimmed in the first quarter of this year. However, the overall growth remains sluggish. This can be attributed to the restricted spending by the Americans, even though gas prices have lowered and hiring has picked up.
Exports have decreased owing to the increasing value of the dollar which has made the U.S. goods expensive. Analysts indicate that the U.S. economy is expected to grow at a 2% in the second quarter ending in June. According to the Institute for Supply Management, a trade group consisting of purchasing managers, the number of new orders have reached the highest level since December last year. Also, the manufacturing firms have started hiring again which has led to the increase in employments. End of a labor dispute at West Coast ports has allowed raw materials to reach the manufacturers easily. 14 industries have registered growth in May, especially food and beverages, clothing, paper products, and furniture. However, computers and electronics, and textile mills have reported decline. According to the data revealed by the government, overall spending on equipment and building has dropped to 2.8% in the first quarter. This has been the sharpest dip in more than five years.