Manufacturing Industry Remains Strong as Economic Indicator

Manufacturing industry collage

The manufacturing industry has long served as one of the best indicators as to the status of the economy. In fact, the industry is credited for pulling the US out from a two-year recession. This has held true as the manufacturing industry continues to fuel the economy despite facing tough challenges over the past few months.

According to the Commerce Department, new orders for manufactured durable goods in May increased $3.6 billion or 1.9 percent to $195.6 billion. Shipments increased $0.6 billion or 0.3 percent to $194.6 billion. Machinery, up three of the last four months, had the largest increase, $0.5 billion or 2.0 percent to $28.3 billion.

Industry inventories were also higher than expected. Inventories of manufactured durable goods increased $4.1 billion or 1.2 percent to $355.4 billion.  Transportation equipment, up seventeen consecutive months, had the largest increase, $1.7 billion or 1.6 percent to $107.8 billion.

Businesses involved in primary metals, fabricated metal products, machinery, computer and electronic products, appliances, transportation equipment, motor vehicles, defense aircraft and parts, and all other durable and capital goods have all experienced better business activity.

The following companies for sale are listed on Corporations4Sale.com:

The May 2011 data is an encouraging sign that the economy continues to grow, coming up from the last month’s decline. With this, economic forecasters have adjusted their growth projections for the next quarter.

Although it only accounts for about 11.7 percent of U.S. gross domestic product, the manufacturing industry has received significant attention from the government. The Obama administration would like the manufacturing industry to ‘once again’ become the mainstay of the U.S. economy. In a recent report, it was noted that President Barack Obama has launched an initiative to boost jobs in this area.

As a buyer, consider including a manufacturing business for sale in your search to buy a business. With its proven economic resiliency and profitability, your company can be assured of a brighter future and undisrupted growth opportunity ahead.

Sources:

http://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf

http://online.wsj.com/article/SB10001424052702304569504576405421322739418.html<

http://www.reuters.com/article/2011/06/24/us-usa-economy-idUSTRE75N2NO20110624 

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