US manufacturing at seven-year high

10-02-2011

US manufacturing activity surged at a seven year high as inflation grew more than expected.

And employment in the US manufacturing sector rose for the four-month in a row, although there still remains unemployment concerns.

The ISM manufacturing index escalated to 60.8 showing good growth prospects.

"All in all, the ISM report showed the trend in manufacturing output growth (and hiring) rising solidly at the beginning of 2011," economists at UBS Investment Research said in a note to clients, adding the economy was gaining speed.

Similarly, the new orders component moved to 67.8 depicting good future growth prospects.

On the contrary, the prices paid component of the ISM index jumped to 81.5 from 72.5 in December.

"While the prices paid index suggests higher input costs, the overall impact on consumer price inflation monitored by the Federal Reserve will remain muted as wage growth, a key driver of service costs, has remained moderate," said John Silvia, chief economist at Wells Fargo Securities in Charlotte, North Carolina.

Corporate profits have risen as US manufacturing sector has been on the expansionary mode for the last 18 months.

Even small business sectors are showing signs of recovery. The most recent gross domestic product growth figures showed the US economy gathered speed in the fourth quarter to regain its pre-recession output peak with a big gain in consumer spending and strong exports.

RELATED NEWS

  1. Made a program change you wish you hadn't? Lose the only copy of the device program? Not sure if the program running is the right one?
    Control Logic’s ‘Vault’, powered by MDT AutoSave Change Management software, is a plug-and-play system to help reduce errors and downtime, increase productivity,...
  2. tank
    A collaborative partnership between Lockheed Martin, Australian manufacturer Omni Tanker and the University of New South Wales (UNSW) will look to develop and commercialise world-first composite tank technologies, thanks to a grant from the Federal Government’s Advanced Manufacturing Growth Centre...
  3. 3D printer
    Obsolescence is an unavoidable part of any manufacturing environment. However, it’s concerning that nearly 70% of companies admit they do not know when vital equipment requires replacing, or when they do, they scramble to find replacements. Here, Claudia Jarrett, country manager at automation parts...