St. Paul, MN (September 25, 2019) — US Factories are picking up and some state the recession has been overstated, according to Stock Portfolio Management – Zacks Investment Research.
Economic output shrank for two straight quarters this year. Many market pundits began to believe that manufacturing is in recession. However, industrial output rebounded in August and registered its largest increase in a year. Banking on such better-than-expected manufacturing numbers, top manufacturers are well poised to ramp up profits.
Industrial Production Jumps — A Welcome Sign of Resilience
Things are looking up for the manufacturing sector. The Federal Reserve recently said that industrial production, a measure of factory, mining and utility output, increased at a seasonally adjusted rate of 0.6% in August compared to the prior month. The reading was well above analysts’ expectation of a 0.2% increase.
The Fed further added that output at U.S. factories increased an average 0.2% a month over the past four months after declining an average 0.5% a month during the first four months of the year. The mining index, which includes oil and natural gas extraction, also went up 1.4% in August after dropping 1.5% in July as Hurricane Barry affected oil rigs in the Gulf of Mexico. By the way, output in the volatile mining sector jumped 5.1% from a year ago.
Adding to the positives was an uptick in utility production. Capacity utilization increased to 77.9% in August, its highest level since March. The industrial output and capacity utilization report runs counter to earlier signs of weakness in the manufacturing sector.
Matsuura Machinery USA, Inc., located in St. Paul, MN is the U.S. subsidiary of Matsuura Machinery Corporation in Japan. Since 1935, Matsuura has been the forerunner in designing innovative technology and manufacturing solutions to a variety of industries around the globe. Matsuura Machinery USA, Inc. delivers unmatched excellence in 5-axis, vertical, horizontal, linear motor, multi-tasking CNC machine tools and machines with a powder bed metal AM platform with machining capability.
Matsuura Machinery USA, Inc. provides the service, applications and technical field support that have always been the Matsuura standard for business. For more information on Matsuura products, contact: [email protected] or visit: www.matsuurausa.com.