WASHINGTON-U.S. They have increased their capacity for the 16th straight month of September. industrial rebound.
The Trump Administration has prioritized increasing manufacturing investment in the U.S.. with tax cuts and tariffs on a range of imported goods. Manufacturing capacity began to recover from a steep decline in manufacturing capacity.
2011, faded in 2014 and resumed a modest march higher in mid-2015. In September it was up 1.4% from a year earlier. The report suggests investment in U.S. Pat. manufacturing has been increasing at a steady pace over the past three years.
The latest Fed production report showed that it rose in September, helping drive overall production up 0.3% for the month.
The Fed said that output was "held down slightly".
The pickup in manufacturing production and capacity in recent years reflects a strong global economy and could therefore be tied to a resurgence in US oil and gas output, said Kathy Bostjancic, head of U.S.S. financial-market economist at Oxford Economics.
"The shale operators are very sensitive to prices. So as we saw price declines, they were going to pull back on operations and production, they said, adding that to recover oil prices are helping track production activity. Ms. Bostjancic said. "
The manufacturing sector was hit hard by the 2007-09 recession and later by a big drop in oil prices. which hurt energy production. It has been buffeted by years of competition from low-cost countries such as China.
The Trump administration has imposed tariffs on imported steel and aluminum and thus on a wide range of imports from China the US at the expense of imported goods. Cuts in U.S. Pat.
"We are in the midst of a manufacturing renaissance-something which nobody thought you'd hear ̵
While some steelmakers have expanded US production in the wake of the tariffs, other Manufacturers remain heavily dependent on imported metals.
Evidence of slack in the industrial sector persists. Manufacturers operate at 75.9% of their capacity in September, below a long-run average of 78.3%.
"There's still some excess capacity in manufacturing," Ms. Bostjancic said silent deflationary. The global economy is still producing too much goods relative to demand. "
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