All Posts Tagged: tax reform bill

U.S. Outlook: Industrial production ends 2017 on a high note

Scott Anderson
Chief Economist

December industrial production handily beat consensus expectations, increasing 0.9% in December.

young man in hardhat checking a reading at a large industrial workstation.Strong monthly gains were also seen in a number of manufacturing sectors from textiles and transportation equipment to food and beverage and machinery.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Jan. 19.

Key observations:
  • Industrialized production data reveal an 11% annualized gain in industrial production over the last three months of the year, a pace not achieved since the first months of the expansion.
  • The recently passed tax reform bill will only add to the demand for business equipment, which was already rising organically.
  • A weak U.S. dollar is making U.S. manufactured good more attractive globally, boosting U.S. exports and manufacturing production.
  • Accelerating global growth is also increasing demand from abroad.

 

Read my full report.

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