US Factories Take Hit

Issue 65

Orders for U.S. goods recently fell in February, with many speculations that the decrease could be caused by colder weather in months for many regions of the United States.

Nevertheless, manufacturing in the country remains strong as the economic recovery gains steam amid an improving public health situation and massive fiscal stimulus, with the AP reporting that U.S. manufacturing activity has reached its fastest pace since 1983.

Harsh weather devastated significant parts of the country though, such as severe winter storms in Texas and other parts of densely populated Southern regions, causing disruption to consumer spending, production at factories, home building, energy, and sales.

Significant growth within the economy is expected to take off in 2021, driven by a massive $1.9 trillion pandemic relief package and the reopening of nonessential businesses as more Americans are vaccinated against the coronavirus.

Orders for goods from U.S. factories were held down by specific declines in the demand for machinery, computers and electronic products, and primary metals. Orders for electrical equipment, appliances, and components increased steadily, however.

Source: Reuters & AP