The Federal Reserve reports that US manufacturing production increased by 0.4% in October. Daniel J Meckstroth, chief economist at the Manufacturers’ Alliance for Productivity and Innovation Foundation (www.mapi.net), said the figures proved that “US manufacturers are showing firm signs of life after a mid-year slowdown.

A recent major driver of growth is the ramping up of the construction supply chain; both residential and commercial plus industrial construction are strong, while public-works construction is growing at a modest pace.

“Manufacturing production could have been even better if not for a steep decline in energy production, with energy consumer products, commercial products and converted fuel down 1.7% in October.

The head-winds in manufacturing — a decline in the supply chain of oil country goods and high inventories — are at their worst, so the good news that manufacturing posted solid growth in October bodes well for 2016.”

However, the US Census Bureau reports that the US manufacturing trade deficit reached $74.7 billion in September, surpassing the August figure of $73 billion to become the highest monthly total on record.

Alan Tonelson, an economist who set up the RealityChek manufacturing and trade blog, said: “The swelling of the manufacturing trade deficit is more evidence that, while the overall US economy has recovered from the 2007-09 recession, the manufacturing sector continues to lag. While overall employment is up 3% since the start of the recession, in December 2007, manufacturing employment is down 10%.”

Meanwhile, the Alliance for American Manufacturing highlighted the fact that US imports from China hit a record high
of $45.7 billion in September. Alliance president Scott Paul said that they are “killing America’s manufacturing recovery”.