US: Manufacturing sector is on more solid footing - Wells Fargo

According to analysts from Wells Fargo, manufacturing activity in the United States is regaining footing, as signaled by today’s data.

Key Quotes:

“Today’s better-than-expected print for durable goods orders comes on the heels of back-to-back gains in manufacturing output and increased hiring in the factory sector.”

“In 2016, the triple threat of steep declines in commodity prices, a hobbled global economy and a strong U.S. dollar have conspired to put the manufacturing sector on its heels. Today’s durable goods report for July follows other indicators, like back-to-back monthly gains for manufacturing jobs, back-to-back increases in industrial production and an ISM index that has strung together five straight months of expansionary readings. The manufacturing sector is on more solid footing. The dollar has come down from loftier levels earlier this year, commodity prices have stabilized somewhat and the global growth outlook is at least not getting any worse.”

“Durable goods orders increased a larger-than-expected 4.4 percent in July. Revisions increased the magnitude of June’s decline, but even after taking that into account, today’s report beat expectations and offers the latest evidence that the beleaguered factory sector is finally gaining traction.”