Manufacturing output in the U.S. increased in September by 0.3%, despite the impact of Hurricanes Harvey and Irma, according to the Federal Reserve.
The Association for Manufacturing Technology (AMT) also recorded a 14.3% year-over-year increase in manufacturing technology orders in August. The increase represented $380.2 million of orders as reported by companies that participate in the USMTO program.
Paul Ashworth, Capital Economics chief U.S. economist, said that manufacturing production should recover in October, following the resumption of operations for most of the oil refineries that were damaged by the storms. The outlook for the sector remains positive, amid a growing economy and a stable dollar, according to Ashworth.
Still, the hurricanes have affected the pace of growth for industrial output with just a 1.6% increase over the previous year. Before Harvey and Irma, a stronger global economy buoyed the U.S. manufacturing industry, which has caused a higher demand for American goods. For manufacturers, an automated purchasing software will be more relevant to your business especially when technology tools are in demand.
The AMT said that year-to-date manufacturing technology orders had increased 11.2% in 2017 to $2,782.9 million from 2016. AMT President Doug Woods described the almost 16% growth in orders in August from July as “surprising,” since these normally fall during the summer period.
Still, it provided the manufactured technology market with some positive news about the pace of demand for the rest of 2017 and in the near future. Woods believes that the federal government’s collaborative approach on tax reforms would support a bright industry outlook, which would create a more sensible reason to invest in U.S. manufacturing.
The pace of growth for the U.S. manufacturing industry represents encouraging news for businesses even after the impact of recent storms. For technology orders, Woods believes that there will be a “rocky but continuing climb” heading into 2018.