"The response of capital spending to the COVID pandemic is encouraging for the outlook for 2021."
The onset of the pandemic reduced the global flow of goods. But when demand suddenly snapped back, supply chains proved less resilient.
“Manufacturing is doing well but it will not be smooth sailing over the next few months", in part because of supply-chain disruptions.
The administration is "identifying potential choke points in the supply chain" amid a shortage that has impacted automobile production around the world.
Manufacturing has been driven by strong demand for factory goods "as 23.7% of the labor force works from home because of the COVID-19 pandemic."
The continued improvement in the key measure of U.S. business investment suggests manufacturers are optimistic about a return to normalcy next year.
“The sugar rush from re-openings has now faded and a resurgence of domestic coronavirus cases ... will weigh heavily on business investment."
The company is “the latest manufacturer to exhibit signs of strain at a time of weakness for the industrial economy."
“We had relatively strong and steady job growth over the year despite a number of headwinds," an economist says.
A gauge of manufacturing activity hit its lowest level in 10 years but the easing of U.S.-China trade tensions may benefit some industries.
The 266,000 jobs gain shows the labor market "is continuing to provide the key foundation for the U.S. economy.”
“There is nothing to point to in [the November factory activity] report that signals a bottom in domestic manufacturing."
