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Manufacturing's Value-Added to the U.S. Economy

Posted February 02, 2017 by Bill Madl
Article Posted in AICC January 25, 2017 by Virginia Humphrey

Written by Chad Moutray, Ph.D., CBE, National Association of Manufacturers

The Federal Reserve reported that manufacturing production rebounded in December after pulling lower in November, with output in the sector up 0.2 percent in the latest release. Manufacturers have struggled to increase demand over the past couple years, with a strong dollar and global headwinds dampening overall activity, but recent data have started to reflect a turnaround in sentiment. In that regard, manufacturing production grew 0.2 percent year-over-year in December, its first positive reading since June but still indicating essentially stagnant growth over the past 12 months. Similarly, manufacturing capacity utilization edged up from 74.7 percent to 74.8 percent, which, despite some progress, remained below the 75.2 percent utilization rate observed one year ago. At the same time, total industrial production jumped 0.8 percent in December, boosted by a spike in utilities output. It marks the largest monthly gain since March 2014.
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