3 Nov 2009
In a report released on November 2nd by Reuters, manufacturers are reporting an increase in output, as well as an increase in lead time for supplies.
The manufacturing industry is view by economists as a key sector, because ultimately supply starts with the manufacturing industry. When retailers are pessimistic about sales, they cancel orders and manufacturing suffers. When retailers are optimistic about sales, they initiate new orders and manufacturing benefits.
In October, manufacturers reported their 3rd consecutive month of growth in new orders and the highest rate of growth since April 2006. Furthermore, 13 out of 18 manufacturing industries reported growth.
According to industry experts, the growth was initially fueled by the need for retailers to replenish their depleted inventories; however, the more recent growth is merely the result of a increases in consumers’ buying patterns.
Although manufacturing is only one sector of the U.S. economy, its recent growth is something to be positive about.