A recent economic report from the National Association of Manufacturers (NAM) shed light on three of the leading factors that continue to drive growth and positive projections for U.S. manufacturing.
- One of the principle drivers continues to be high employment numbers, with hiring continuing to expand. Manufacturers are also reporting the highest levels of optimism regarding future output since February 2015, which should support continued hiring. Additionally, the Kansas City Federal Reserve Bank’s district noted a 17-year high in manufacturing employment expansion for March.
- New Orders for durable goods were also up 3.1 percent in February after falling 3.5 percent the month prior. Increases in orders for motor vehicles, aircraft, and associated parts for both contributed to the growth, with overall transportation equipment orders jumping 7.1 percent for the month. Durable goods orders have trended strongly across the past 12 months, increasing by 6.9 percent since February 2017. According to NAM, one of the more critical elements was that new orders for core capital goods, which are not related to defense or transportation spending, have increased eight percent year-over-year.
- Consumer spending continues to be a bright spot, with preliminary data from the University of Michigan’s confidence measure jumping to its highest level since January 2004. Despite lower retail sales to begin the year, year-over-year personal spending has risen by 4.5 percent.