The National Association of Manufacturers (NAM), the Association of Washington Business (AWB) national affiliate for manufacturing, reports manufacturing production was up again in July. The 0.2% increase follows a 0.4% hike from June. July capacity stood at 79.9% and even motor vehicle (cars and trucks) and parts output rose by 3.6% in July.
While the news is good, industrial output remains below the 1972-2007 average of 81% of capacity, reports the Wall Street Journal.
The news was particularly welcome in New York State, long considered part of the "rust belt." Bloomberg reports New Yorks manufacturing unexpectedly grew in August as the price of raw materials cooled. Increasing foreign demand because of the weakened dollar and decreasing energy prices as the cost of a barrel of crude declines contributed to the upswing.
The weakness, according to the Associated Press, remains in the auto industry where the capacity is 10.4% below 2007 and the prolonged slump in housing.
AMERICA REMAINS #1 IN MANUFACTURING: NAM President John Engler, former Michigan governor, says the U.S. is still the world's largest manufacturer and China, while growing at a 10% annual rate of manufacturing, will not surpass the United State next year as the Financial Times reported last week. NAM figures that may happen by 2020, but not in 2009.
Don C. Brunell, President (DonB@awb.org)
