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US Factory Orders Boost Economic Growth


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US factory made goods have been on the rise now three months in a row. The current demand for US goods has been helping to boost economic growth where a previously grim economic outlook had been present. This increased demand for US factory produced goods is giving off great vibes and in turn helping to ease the tensions of economic instability and boost the prospect of economic growth.

The Auto Industryeconomic growth

The auto industry has seen a boost in auto sales over the last three months. Amid recent increases in automobile recalls from both Ford and General Motors, these past few months has shown some of the best sales numbers in recent years. With an increase in new vehicle demand, production lines have been gearing up in order to supply the current demands. Factory orders reported a 0.7 percent increase according to the Commerce department, adding to the third straight monthly gain. A comparison against this time last year’s numbers, auto sales have surged 11.4 percent for the season and one of the strongest paces for the industry since February 2007.

General Motors and Chrysler have both announced that their sales number achieved in May were the best for that month than in the past seven years. Hyundai Motor Company as well as Nissan motor Company posted elation over their May sales too, stating that they both had the best sales month in company history. These surprisingly strong US sales continue to promote strong industry and economic growth suggesting that US manufacturing is on the rise more long term. Good news for US manufacturing jobs that are also on the rise as well with companies looking to expand production. In recent days, Nissan announced following the New York Auto Show, that the anticipated sales numbers for the soon to be produced new Murano has enabled the Nissan Motor Company to add 500 new assembly line jobs to the US job market in order to meet the anticipated high demand.

Larger Manufacturers

Larger manufacturers have also been on the rise when it comes to meeting the global demand for larger US factory produced goods such as jet liners. Boeing at the beginning of 2014 had announced the increasing number of orders for their commercial jet liners. With customers requesting newer versions of Boeing’s already popular 767’s to be produced for purchase. As airline companies have merged and the rise of discount airliner companies continue to grow in popularity around the globe, the need for a newer updated fleet of passenger commercial jets have also been on the rise. These demands for larger and more modern equipped jetliners have increase the production of one of the largest US airplane manufacturers. Boeing has stated their determination to meet the increased demands throughout the year and next by increasing production thus employing more people.

The US Economyeconomic growth

Forecasting of the US economy has projected overall US production growth between 1 and 3 percent over the next year. Since the beginning of the second quarter, the demand for US made products has continued to rise giving hope to a nation that has been told the economy is getting better when unfortunately for many the effects of a slightly stronger economy are not yet felt. The US economic growth in January rose about 1 percent over last year at the same time. Currently many manufacturers have stated that there are still many unfulfilled orders waiting to be produced despite relatively high inventory levels. What this means is that even with higher inventory levels, the increase in demand and better sales being recorded are proving that the US economic growth may not be so far out of reach. With demand trickling upward, the indication to many experts is that US factories will be busy in coming months adding more stability to the job market for many Americans. On top of the increase of production, US goods being shipped and exported have also seen a bump in their monthly numbers. All of these are going up as manufacturers maintain determination to deliver the currently more sought after US goods and products.

The rise in demand for US car sales have giving the industry the boost needed in order to turn over a new leaf in the US market. In the past couple of year used cars have been selling at a premium and have created a lag in new car sales, creating further tensions for dealers and manufacturers. As the US market shifts towards more fuel efficient vehicles and electric cars and hybrids, the car companies themselves have been investing in these more sought after vehicles. A pleasant turn around from previous decades where manufacturers produced what they wanted to and forced it on the market, now forced to cater to the market or fall behind. In the spirit of competition, the US economy is starting to see growth instead of a bleak outcome.

 

 

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