US economy shows rise due to higher factory output
Posted by Stephen Cline on April 2nd, 2010There is an indication that the US economy will show some growth due to the higher factory output that is taking place not only in the US but around the world. This seems to be sign enough that the largest economy of the world may come out of the woods faster than expected and be able to buck the trend of job losses and sluggish demand that had been its bane over the last 2-3 years. At the same time, there are some concerns about job creation because of the fact that a lot of companies have started becoming quite efficient and mechanized in their approach to production. Cost management and higher efficiency means that the emphasis now is on leaner and meaner production lines to make higher profits.
Manufacturing is anyways not contributing to too many jobs because there is competition from countries in Asia like China, India and even Vietnam where production and labor costs are much lower than what prevails in the US economy. The building sector also remains sluggish as demand is much lower. Construction activity is at all time ebb as construction spending has fallen to its lowest level in the last 8 years or so. Construction sector in fact looks awful, if one is to believe analysts in the US.
Tags: factory output, US economy