Rate cut to benefit manufacturers
The National Association of Manufacturers said Tuesday’s cut of the Federal Funds rate would be good for manufacturing.
The National Association of Manufacturers praised the Federal Reserve’s Open Market Committee ’s decision Tuesday to lower the Federal Funds rate by a quarter of a point, saying the move would be good for manufacturing.
“The economy is clearly not running on all cylinders and is cooling down from the third quarter’s rapid pace of growth,” said NAM chief economist David Huether. “There are obvious signs that the housing downturn is extending into other segments of the economy as manufacturing production has currently fallen to its slowest pace in nearly a year. Lowering interest rates will bolster business investment, benefiting manufacturers.
“(Tuesday’s) move puts the Fed in an accommodative stance, which is where it should be given recent reports of sluggish growth in consumer and business spending,” Huether added.
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey