NAM’s Victoria Bloom: Manufacturing Gains Steam, but Headwinds Persist

Manufacturing in the U.S. is gaining steam, NAM Chief Economist Victoria Bloom said last week (Sinclair Broadcast Group).

What’s going on: “In both the ISM and the S&P Global PMI reports, we saw continued strength in manufacturing,” Bloom told Sinclair Broadcast Group, a nationally syndicated news outlet.

• “We saw activity expanding for a ninth consecutive month in the ISM report, and for months we’ve consistently seen strong demand across most of the sector. And these reports showed a continuation of those trends.”

Why it’s happening: Strong customer demand, particularly in the U.S., is driving growth in durable goods manufacturing, especially in electronics, appliances, electrical equipment and machinery, Bloom said.

Yes, but … Rising input costs, supply chain disruptions, trade uncertainty and healthcare costs could weigh on the sector’s continued growth.

• “Changing trade policies and the conflict in the Middle East continue to put pressure on supply chains and prices, and today’s reports show those concerns haven’t abated,” Bloom told the news outlet.

Manufacturer outlook: The article cited the NAM’s Q3 Manufacturers’ Outlook Survey, conducted in August and released in September, which found that manufacturers in the U.S. “are generally optimistic, but [are] dealing with multiple challenges amid the growth—chiefly increased raw material costs.”

What’s ahead: Strong demand also points to continued hiring in manufacturing, Bloom said.

• “As long as that expanded manufacturing activity is sustained, they’re going to need more workers to be able to keep up with it,” she said.