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 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.
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