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US manufacturing spikes three-year high with the arrival of new orders

US manufacturing spikes three-year high with the arrival of new orders
US manufacturing spikes three-year high with the arrival of new orders

With the arrival of new orders, manufacturing in the United States has reportedly registered a three-year high value in the month of February 2021, expanding at the quickest rate overall.

According to the ISM (The Institute for Supply Management), the country’s manufacturing activity increased up to the 60.8 per cent mark in the month of February, which is 2.1 percentage points above the 58.7 per cent reading that was recorded in January 2021.

As per the Chair of ISM Manufacturing Survey Panel, Timothy Fiore, the survey demonstrates that a recovery is on its path as manufacturers come up with ways of dealing with shortages in supply chains and lingering COVID-19 pandemic issues like short-term shutdowns at some plants for the sanitization of facilities.

Fiore has also added that manufacturers are getting benefitted from a shift in spending, as Americans have started spending money on homes and other projects instead of risking shopping indoors or going out to restaurants.

Sources knowledgeable of the matter state that the performance was the strongest since February 2018 and any reading beyond 50 implies growth in the manufacturing sector.

It is to be noted that the reading of 60.8 per cent in the previous month equaled a similar reading in February 2018. The level in those months was recorded as the highest since a reading of 61.4 per cent that was registered in May 2004. The survey found a rise in optimism, as it gained five positive comments for each cautious comment – up from a ratio of 3-to-1 in the January survey.

Last week, US President Joe Biden had signed an executive order aimed at boosting manufacturing jobs by reinforcing US supply chains for critical minerals, advanced batteries, semiconductors, and pharmaceuticals.

An intensifying semiconductor shortage for auto parts at the global level is forcing prominent auto industry players to slow or halt the production of vehicles just as they were recovering from COVID-related factory shutdowns.

Source credit: https://www.aljazeera.com/economy/2021/3/1/us-manufacturing-activity-hits-3-year-high-as-new-orders-surge

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.