Business Confidence Continues to Drive Manufacturing Gains

by Marilou Long on November 14, 2017

in Economic Indicators,manufacturing

While most of the media is focused on Congress’ push for tax reform, businesses across the U.S. are steadily increasing business investment.  From the linked WSJ article:

Also, business investment has risen, a sign companies are spending to increase productivity. In the first quarter, investment in plants climbed a seasonally adjusted annual rate of 14.8%, the highest since early 2014. Investment in equipment climbed 8.8% in the second quarter, the highest in almost two years.

A confluence of factors is helping manufacturing, according to Stanley Black & Decker Inc. Chief Executive James Loree, who cited a shrinking wage differential between U.S. and foreign workers and rapid technological advances in the sector. In his particular business, “end users love locally made products,” Mr. Loree added at The Wall Street Journal CEO Council meeting in Washington.

“Global macroeconomic conditions are solid,” Rockwell Automation Inc. Chief Executive Blake Moret told analysts, citing “strong orders” and optimistic forecasts for global gross domestic growth and industrial production.

 

 

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