The factory gauge remains elevated, signaling that corporate tax cuts and consumer strength continue to drive demand and expansion.
Source: www.bloomberg.com
In November 2018, the U.S. manufacturing gauge rebounded as new orders picked up and companies added workers. This signaled that factories remain relatively healthy so far in Q4 2018. As per survey data for capturing manufacturing business conditions, the Institute for Supply Management index increased to 59.3 from 57.7 in the previous month. The factory gauge remains elevated, hinting that corporate tax cuts and consumer strength continue to drive demand and expansion. However, the US-China trade war still looms over the outlook of the manufacturing sector.
