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The latest hurricanes that hit North America were some of the most vicious phenomena ever recorded. They left behind chaos and unrooted communities. However, after each calamity, people get together to rebuild their homes. The factory activity in September showed the heartiest intensity in the last 13 years. A high wave of orders and raw material price spikes are on their way to regenerate the injured economy.
The US Factory Activity Showed in September the Greatest Intensity Since May 2004
On Monday, the Institute for Supply Management issued its latest survey. The paper offers an in-depth look at the U.S. economy after it received a full blow from Irma and Harvey. The most notable effect is an intense wave of orders across factories last month. Employment across factories reached the highest level since 2011.
The report measured an index of US factory activity of 60.8 points last month. The last time a reading showed such a high performance was in May 2004. When the ISM index raises greater than the threshold of 50, it is a sign of a real boom in manufacturing. This segment alone is in control of 12% of the US economy.
The IRM Survey Managed to Intercept a Positive Sentiment Regarding the U.S. Economy after the Monsoon Season
The ISM noticed the monsoon season disrupted supply chain and pricing balance mostly within the chemical products segment. Nonetheless, beverage, tobacco, and food industries received heavy damages as well. Despite hurricanes’ impact on raw material prices, there was only one in 18 manufacturing industries that failed to record growth in September.
The IRM survey took the pulse of the sentiment the US economy gathered rather than raw data. Nonetheless, entities’ reliability on national finances is a distinct marker of a strong market. The evolution of the economy shows little signs of damages after the recent disruptive phenomena.
The third quarter is expected to have six-tenths of a percentage point dented due to Harvey and Irma as far as the GDP growth is concerned. Hurricane Harvey affected mainly homebuilding, industrial production, real estate, and consumer spending when it hit Texas in August. Irma, on the other hand, generated extensive power cuts starting with Florida in September.
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Deborah Nielsen
Deborah Nielsen never thought she could be a journalist and a good one, we might add. Having a strong passion for music, she started singing at an early age, but it was only in college that she formed her first band. Her music education won her a job as a news reporter at the local radio station as well as the chance of meeting her favorite artists. In 2013, Deborah took things forward by starting her own blog and contributing to various news related websites. Currently, she covers a broad area of subjects and topics from various fields.
