Manufacturing recovery shows short-term promise
Following a Commerce Department report that durable good orders rose 3.4% in October, National Association of Manufacturers economist Chi Nguyen said, “America’s manufacturing recovery remains on track for now, but its long-term durability may yet be undermined by various policy choices.”
Nguyen noted that aircraft orders led the way with an 11.4% increase, but that excluding transportation, new orders overall were up just 0.3%. She said that October durable goods orders were at the same levels as June, and “this, too, suggests our economy is back on its pre-hurricane recovery track,” she said.
“But manufacturers aren’t icing champagne or popping corks,” added Nguyen.”Concerns about rising interest rates could yet erode both business and consumer demand, and increasingly tight energy supplies — particularly those of natural gas — will continue to be a problem for the U.S. economy until Congress acts to allow more domestic energy exploration and production.”