Opinion | The manufacturing 'recession' in the US is about to come to an end. By Neil Dutta of RenMacLLC.
Context is important
While the weakness is somewhat shallower, it is more widespread. In 2019, the output from about 70% of the manufacturing sub-industries contracted. By contrast, it was closer to 50% in 2015.In other words, the last factory recession saw fewer industries contracting, but the contraction was deeper. By contrast, we now have a milder contraction spread across more industries. Manufacturing production follows the ups and down of inventories,.
Doing the math, getting inventories up to "where they should be" implies a boost to GDP growth of about 0.3 percentage points on average per quarter this year, a sharp positive swing. Of course, as inventories can often undershoot final sales, they can overshoot as well. Thus, as factories work to fulfill the increased orders the lift to manufacturing production can be substantial. will help to lead to a boost for manufacturing.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
White House facts: White House rooms you probably never knew existed - Business Insider15 rooms in the White House you probably never knew existed, from a chocolate shop to a private bowling alley
Les mer »
Business Insider Intelligence - Business Insider
Les mer »
PRESENTING: The 31 buzziest logistics startups that VCs are watching in 2020 - Business InsiderRead Business Insider's exclusive, VC-sourced roundup of the buzziest logistics startups in the coming year.
Les mer »
UK consumers aren't switching their wealth managers partly due to exit fees - Business InsiderOver half of 1,600 British investors surveyed by Netwealth reported that they've never considered switching from their current investment provider,
Les mer »
Apple's new iPad Pro model possibly delayed due to coronavirus - Business InsiderAs Apple warned investors that the outbreak may hurt its bottom line, reports emerged that the launch of a new IPad Pro could also be delayed.
Les mer »
Walmart is putting an end to its personal shopping service, Jetblack - Business InsiderIntegrating learnings and technologies from Jetblack could still benefit Walmart and would match its recent moves to restructure its e-commerce business $WMT
Les mer »