Coming out of the pandemic related disruption, the larger story of U.S. manufacturing has been an odd blend of good data and bad data depending on the sector.
While some manufacturing was growing as a result of clearing supply chains, other sectors of manufacturing remained soft.
New orders for manufactured goods contracted for the sixth straight month through February, according to surveys by the Institute for Supply Management.
Manufacturing output is down 1.7% from its postpandemic peak in May 2022, according to a three-month moving average of Federal Reserve data.
The U.S. doesn't really manufacture much any longer.
Manufacturing only accounts for around 11% of GDP. However, if purchase orders for inbound component goods are down for six straight months, we can generally infer the absence of downstream consumer demand.
Imports are a deduction to GDP. However, that said, there is nothing visible in the consumer purchasing side to indicate why durable good manufacturing is even as strong as it is.
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