Moderate Growth in Manufacturing Could Be Good Sign

You’re going to be hearing a lot about the BRIC countries for several years to come. BRIC stands for the emerging economies in the world – Brazil, Russia, India, and China – and they’re the ones whose manufacturing is keeping the world economy afloat. A recent article by the Associated Press reveals that within these countries, when their manufacturing figures are in the positives, the American economy shows some signs of improvement.

Although this is a classic case of correlation-not-proving causation, there is a story to be told here. America is the largest consumer of Chinese goods – and it only makes sense that when Chinese products are increasingly exported to America, it reflects an increase in consumption. This increase can point to the fact that Americans are spending more money, or at least more prone to do so in an uncertain economic environment.

However, manufacturing also increased domestically as well. Yes, despite dismal figures in the auto industry, manufacturing within other markets appears to be on a (at least temporary) rise. The same article alludes to the fact that manufacturing has led the United States out of recessions in the past, and that it might be the case this time around. A weak case, considering America’s manufacturing base, but it’s certainly within the realm of possibilities.

If that is the case – if manufacturing really did increase domestically – that would be a good sign for job creation within the private sector. It would mean that with an increase in productivity, these manufacturing firms might be eager to begin hiring again. Not only that, but this trend would also be a signal that the average American consumer is willing to spend money again. Both of these turning points would have an effect on several other industries, such as the suppliers of the parts of manufacturers, and those who sell what firms produce.

For now, though, moderate growth in manufacturing is expected, at least for a while. Unless these new figures are being exaggerated, these might be the first signs of recovery we have been waiting for.

That’s my take on the situation. What’s yours?

Chris Buchheit

Chris Buchheit

Chris Buchheit was born under the hot Floridian sun during some year in the 1980s. There he studied school matters until moving to North Carolina in 1999. Possibly due to the fact that his mom had enough of him being inside all the time, he quickly got involved in community affairs via the Boy Scouts of America, where he learned the values of citizenship, morality, duty to God and country, and that the biggest kids get to boss around the smaller ones. Chris attained the rank of Eagle Scout in 2004, and still values the rank as one of his proudest achievements. Beginning in 2006, Chris began attending the University of North Carolina at Chapel Hill, where he quickly learned the value of basketball and poplar trees. Since attending UNC, Chris has been double majoring in Asian Studies, with a concentration in Chinese, and Political Science. When he isn’t slaving over his honors thesis, looking up a bunch of Chinese Characters, volunteering, or mindlessly browsing the same websites over and over, Chris enjoys writing short stories and novels. Much to his roommates’ annoyance, he also spends his free time learning to play the guitar. Above all else, though, Chris values God, his family, and his friends. For the future, Chris plans to apply to Georgetown to further his studies in Political Science, hopefully with a concentration on China. Pending acceptance into Georgetown, Chris would like to study while gaining professional experience in a government job in Washington DC.
Chris Buchheit

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