U.S. Manufacturing Output Surges in June, but Production Still Below Pre-pandemic Level; New York Manufacturing Expands More Than Forecast as Orders Grow; A Resurgence in British Manufacturing is the Best way to Revive our Economy After Coronavirus; INSIGHT: Manufacturing the U.K.’s Regeneration.
U.S. Manufacturing Output Surges in June, but Production Still Below Pre-pandemic Level
WASHINGTON (Reuters) – U.S. factory output increased for a second straight month in June as motor vehicle production accelerated amid the reopening of businesses, but the nascent improvement in manufacturing activity was overshadowed by surging new COVID-19 infections.
The Federal Reserve said on Wednesday manufacturing production increased 7.2% last month after climbing 3.8% in May. Still, factory output was 11.1% below its level in February.
New York Manufacturing Expands More Than Forecast as Orders Grow
A gauge of manufacturing in New York State advanced for a third straight month in July, consistent with a reopening of the economy that is generating more orders and shipments.
The Federal Reserve Bank of New York’s general business conditions index jumped to 17.2, the highest level since November 2018, from minus 0.2 a month earlier, a report out Wednesday showed. The median projection in a Bloomberg survey of economists called for the overall gauge to climb to 10.
A Resurgence in British Manufacturing is the Best way to Revive our Economy After Coronavirus
Britain is teetering on the brink of an economic recession of the kind we have never seen before in our lifetime.
Economic recovery from this virus will not be easy anywhere in the world, but it will be considerably harder for the UK as a result of our fundamental imbalances unless we find new ways of getting our economy growing again.
INSIGHT: Manufacturing the U.K.’s Regeneration
Despite these challenges, the manufacturing sector plays a significant role in the U.K. economy, providing over 2.7 million jobs, making up 191 billion pounds ($241 billion) of economic output and accounting for 65% of U.K. research and development (R&D) spending.
As the U.K. seeks to rebuild the economy, support for sectors such as advanced manufacturing and technology will become paramount, as these are naturally rich producers of valuable intellectual property (IP) and the innovation which will create sustainable growth and even more jobs for the future.
Source: Bloomberg tax