Reuters is reporting that the U.S. economy is having an amazing start to the third quarter, with manufacturing output rising broadly in July and automobile production recording its largest increase in five years. Economists are saying that these are signs that the economy is picking up momentum.
“The broad-based nature of the (manufacturing) gains indicates that the strong second-quarter rebound in economic growth momentum is being sustained,” says Millan Mulraine, deputy chief economist at TD Securities in New York. With the American manufacturing sector on a roll, the perfect time to get involved in such an important sector of the economy is now.
Here’s a breakdown of some of the numbers that show what manufacturing is doing to boost the economy:
- The Federal Reserve reports that factory production jumped 1.0% last month after rising 0.3% in June. That is the largest gain since February and reflects an increase across all major categories.
- Auto production had an incredible quarter with a massive 10.1% increase in production. The biggest rise in the automotive industry since July 2009!
- There are also gains in the production of machinery, computers and electronic goods, which economists are saying hints at a pick-up in business investment this quarter.The more businesses making investments, the more stable the economic growth.
- The solid rise in manufacturing and a 0.3% advance in mining output helped to offset a 3.4% weather-driven decline in utilities production. That leaves overall industrial production up 0.4% in July.
- The economy grew at a 4.0% annual pace in the second quarter and current forecasts peg the growth rate for the third quarter within a range of 2.5% to 3.0%. Now that may not sound like much, but if this momentum continues, we’ll have a year of noticeable economic growth and even more increases in the years to come.
These numbers and percentages are a great indication that the manufacturing industry is gaining steam in a big way. If you still aren’t sure about the importance of manufacturing to our economy, check out this video of the millennial generation and their thoughts on the importance of a strong manufacturing sector.
Gains in manufacturing are gains for the economy, and ultimately are gains for every consumer out there in America. We think that these are the jobs and careers that you should be looking into in the future. Soon, it will be your projects and products that will lead the revitalization of the American economy!
photo credit: Reuters