The worst of America’s manufacturing slump is probably over, although the industry may do little to add to economic growth. A decline in the dollar this year will help provide some relief going forward for export-oriented factories. Remaining hurdles includes still-soft overseas markets and U.S. businesses’ efforts to bring inventories more in line with a recent weakening in sales.
“Manufacturing is slowly recovering,” said Michael Carey, chief economist for North America at Credit Agricole CIB in New York, who accurately forecast the gain in factory output. “The headwinds seem to be fading and the sector is moving forward at a moderate pace.”