The manufacturing sector has certainly seen its share of ups and downs, but so far this year is proving to be a strong year in sales for the industry. While there was a 1.3% drop in January, the Commerce Department announced that orders for durable goods rose a promising 2.2% this past February, the highest the industry has seen in three months.
It was reported that the increase was driven by a surge in commercial aircraft orders, and generally that particular market fluctuates on a monthly basis. In fact, demand for commercial aircraft jumped to 13.6% after seeing a drastic 22.1% drop just the month before. Meanwhile, orders for motor vehicles increased as well, jumping 3.6% in February after seeing a 1.9% drop in January. Demand also rose for primary metals, including steel.
The Institute for Supply Management’s original estimate of manufacturing activity grew faster than expected in February as the manufacturing index rose to 53.2 in February, up from 51.3 in January. Analysts predict that the growth rate in the manufacturing will continue to rebound as much as 3 percent for the remainder of the year. Economists believe that manufacturing output will strengthen this spring thanks to better weather after the US suffered through truly severe snow storms this past winter. If the manufacturing industry continues on this trajectory, it will turn out being the fastest annual economic growth since 2005.