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A Boost in the US Manufacturing

The US manufacturing activity has been positively influenced by the recent economic recovery.  It is a considerable improvement given that this boost was received faster that it was expected. The manufacturing index of ISM (Institute for Supply Management) reached 53.2 that is much higher than its 51.3 in January. This growth shows expansion. The US economy depends greatly on manufacturing and construction sectors and there were threats that bad weather conditions could have a severe impact on these areas.

According to Bradley Holcomb, chair of ISM survey committee, some manufacturers said that violent weather affected their business, while others expressed optimism regarding future growth. The US Department of Commerce stated that the construction spending reached 0.1% in January. Compared to January last year, construction spending rose to 9.3%.

Significant Growth?

Severe weather had a negative impact on car sales unfortunately. In February Toyota, General Motors and Ford have seen declines in deliveries. Nevertheless the decline in sales was not expected and the manufacturers reflect optimism in terms of growth in the coming months.  Bill Fay, general manager at Toyota said that the sales in February have been influenced by the distinct shift in the second half of month, providing a promising forecast for March.

Meanwhile sales at General Motors dropped 1% compared to the predictions of 6%. Nissan and Chrysler achieved an apparent sales increase of 16% and 11% respectively.  According to some analytical surveys the total car sales have been influenced by discounts offered by traders who aimed at attracting clients to showrooms to alleviate the economic issued caused by the severe weather.

According to TrueCar the discounts will reduce after the weather gets better. Everybody expects to return to balance as the winter leaves and the inventories ease.