One America News reported yesterday that U.S. factory activity accelerated to its highest level in nearly 2-1/2 years in December.
The article reports:
The strength in manufacturing reported by the Institute for Supply Management (ISM) on Tuesday likely helped to soften the blow on the economy in the fourth quarter from the relentless spread of COVID-19 and government delays in approving another rescue package to help businesses and the unemployed.
The article also notes that there are bottlenecks in the supply chains due to the increased number of coronavirus cases.
The article also concludes:
The ISM’s forward-looking new orders sub-index rose to a reading of 67.9 last month from 65.1 in November. Strong orders growth boosted manufacturing employment, which had contracted in November. The ISM’s manufacturing employment gauge rebounded to 51.5 from a reading of 48.4 in November.
But the supply chain gridlock is driving up costs for manufacturers. The survey’s prices paid index jumped to a reading of 77.6 last month, the highest since May 2018, from 65.4 in November. That raises the risk of higher inflation this year, though high unemployment could limit price pressures.
The labor market has lost steam in tandem with the economy since job growth peaked at a record 4.781 million in June.
According to an early Reuters survey of economists, nonfarm payrolls probably increased by 100,000 jobs last month after rising by 245,000 in November. That would mean the economy recouped about 12.5 million of the 22.2 million jobs lost in March and April. The government is scheduled to publish December’s employment report on Friday.
Manufacturing has come back to America because of the trade policies of President Trump. People in areas of the country that have had high unemployment for years have gotten their manufacturing jobs back. It is a pretty safe bet that under Joe Biden, China will take over American manufacturing again and the American worker will be out of luck.