Immigrating to the United States requires attention to U.S. economic trends: The United States saw manufacturing output rise for the fourth consecutive month in November, with nearly all sectors experiencing growth, indicating an increase in economic momentum. Some institutions believe that, given the rapid acceleration of economic recovery, the Federal Reserve (FED) should prepare for policy adjustments.
The Federal Reserve announced on Monday that manufacturing output in the country grew by 0.6% in November, following a 0.5% increase in October. In addition to manufacturing data, recent key macroeconomic reports from the United States have been encouraging: November's industrial production month-on-month growth was the largest in over a year, retail sales in November increased by 0.7%, reaching a five-month high, and non-farm payrolls in November rose by 203,000, significantly exceeding the expected 170,000. Consumption and employment, which are the most important components of the U.S. economy and core references for the Federal Reserve's policy stance, have recently shown ideal expansion momentum. These data have painted an optimistic picture of the U.S. economy and increased the likelihood of the Federal Reserve beginning to taper its bond purchases.
Chris Rupkey, Chief Financial Analyst at Tokyo-Mitsubishi UFJ Ltd, stated: “The economic outlook for 2014 is bright. The U.S. economy has reached ‘escape velocity,’ as these data demonstrate, and the Federal Reserve should begin to make policy adjustments.” Federal Reserve officials will hold a monetary policy meeting on Tuesday and Wednesday to assess the economic situation. Some analysts expect that they will announce a reduction in the monthly bond purchase scale of $85 billion, while more analysts believe the Federal Reserve will wait until January or March of next year to take action.
Manufacturing has also advanced after experiencing a slump earlier in the year, with two additional reports on Monday indicating that manufacturing continued to progress steadily in December. The sector has benefited from a robust domestic housing market and improvements in the global economy. Manufacturing output, which accounts for 75% of total industrial production, also achieved an expansion of 0.6 percentage points, marking the fourth consecutive month of growth. Although automobile production increased by 3.4%, accounting for most of the increase, output in sectors such as metal products, textiles, furniture, and electrical appliances also saw growth. However, production of computers and electronic products, machinery, raw metals, and transportation equipment experienced a slight decline. The growth in manufacturing output, combined with a surge in mining and utility output, boosted November's industrial production by 1.1% compared to the previous month, marking the largest increase since November of last year, and pushing industrial production above pre-recession levels.
Millan Mulraine, Senior Analyst at TD Securities in New York, stated: “The broad-based growth in output across various sectors provides a very encouraging picture for overall domestic economic activity.”
