TECH - 5 Stocks to Buy on a Steady Rebound in Manufacturing Activity | Benzinga
The U.S. manufacturing sector is finally showing signs of recovery after months of struggle that saw demand slowing due to inflationary pressures and higher borrowing costs. However, with inflation finally showing signs of cooling, demand is rebounding.
The U.S. Census Bureau reported that orders for U.S. manufactured capital goods, made to last more than three years, rose 0.1% in May, higher than the consensus estimate of a decline of 0.1%.
Although the rise was lower than April's jump of 0.6%, the positive sign is that orders are growing steadily. Durable goods orders for items such as toasters to aircraft rose 0.1% in May after a downwardly revised 0.2% gain in April.
The report comes days after the Federal Reserve said that production at U.S. factories rose at a robust pace in May. According to the report, manufacturing output jumped 0.9% in May from a downwardly revised 0.4% decline in April. Year over year, production at U.S. factories increased 0.1% in May.
Inflation has been a major threat to the manufacturing sector. The consumer price index remained unchanged in May after increasing 0.3% in April. Year over year, CPI rose 3.3%, lower than the consensus estimate of a rise of 3.4%.
Although inflation remains higher than the Federal Reserve's 2% target, it has finally started easing after increasing in the first quarter.
Federal Reserve Chairman Jerome Powell said ...