August is the Third Month in a Row
The American economy has been seeing signs of hope despite constant talk of a recession. August is the third month in a row that has showed expansion within the manufacturing sector, which is a great sign for the economy. U.S. manufacturing saw a decline in past years as companies outsourced their work to foreign countries with lower wages, negatively affecting our economy. In the last couple years more and more companies are bringing their manufacturing back to the United States as costs associated with foreign manufacturing have began to rise. It is important to have domestic manufacturing, otherwise a country starts to depend on another country which can lead to a very bad situation.
Bringing more manufacturing back to the U.S. will only strengthen our economy and it does it in a variety of ways. First of all, it will keep the money within the country which will by cycled into the economy. It will also add jobs for people during a time of high unemployment with so many people competing for the same jobs. Lastly it will affect other industries as well, specifically the construction industry, both commercial and residential. More commercial buildings will be required for the manufacturing, while new homes will be needed for the employees that fill the new jobs. Manufacturing saw an index of factory activity up from 55.4 to 55.7 with an above 50 reading indicating general expansion within the industry. The construction industry also saw a rise with a 0.5% increase in residential and a 0.6% increase in commercial construction, which is 5.2% higher than August of 2012.