US Manufacturing Sector Strengthens In June US Commerce Department

The orders for U.S made goods have increased more than expected. Additionally, the business spending has seen a stronger growth. The spending has shifted from goods to services in June. The Commerce Department revealed that goods demand pivoted by 18.4% during the pandemic thereby boosting the Manufacturing sector.

The sector saw a huge growth as most of the Americans were cooped up at home. The Manufacturing sector accounts for 11.9% of the U.S economy. However, the demand has stressed the supply chain owing to capacity constraints and supply chain gaps.Contrastingly, the Manufacturing sector slumped in July due raw materials supply shortages. But the Commerce department suggested that the supply chain bottlenecks are regaining momentum.

The services sector is gaining momentum as the government has eased restrictions allowing people to visit restaurants and casinos, travel to places, and do other service related activities. The increase in factory orders was seen mainly due to notable gains in the field of machinery, computer electronics and related products. Moreover, the rise in the factory orders is also backed by electrical equipment, appliances, and components.

The surge in factory inventories was far more than estimated GDP by the government. The Commerce Department also reported that capital goods order for non-defense products has seen major business spending. The business spending on equipment captured double digit growth.The U.S Commerce Department stated that though the Manufacturing sector is slowed down in July, the will continue to expand in the coming months.