December industrial production growth aids manufacturing staffing

01.20.2012


A report released by the Federal Reserve Bank on January 18 indicates that industrial production increased by 0.4 percent in December, and this uptick in activity could spur manufacturing staffing.
A report released by the Federal Reserve Bank on January 18 indicates that industrial production increased by 0.4 percent in December, and this uptick in activity could spur manufacturing staffing.

A report released by the Federal Reserve Bank on January 18 indicates that industrial production increased by 0.4 percent in December, and this uptick in activity could spur manufacturing staffing. The monthly figure brought the quarterly rise in industrial production to 3.1 percent. The final quarter of 2011 was the 10th consecutive period where the figure increased.

The rise in industrial production exceeded the forecasts of various market experts. Economists surveyed by Bloomberg predicted that the measure of activity would increase by 0.5 percent. A total of 80 individuals participated in the survey, and their estimates ranged from as low as no increase to a gain of 0.8 percent. Participants in a survey conducted by Dow Jones Newswires provided the same prediction of a 0.5 percent rise, according to Nasdaq.

The industry's capacity utilization rate rose to 78.1 percent in December, which was an improvement from November's rate of 77.8 percent. This result mirrored the prediction of economists polled in a Dow Jones Newswires survey, the media outlet reports.

Bloomberg reports that slim inventories and rising expenditures stemming from both business and consumers could both contribute to factories boosting payrolls, potentially spurring the creation of manufacturing jobs.

"Manufacturing remains an engine of growth," John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC in Boston, told the media outlet. "Manufacturing has benefited from exports to emerging markets. The more resilient those economies are, the better it is for U.S. manufacturing."

The evidence of rising industrial output and its impact on manufacturing staffing can be seen by job gains that have been made in South Dakota. A report that was recently released by Manufacturers’ News, Inc. indicates that the number of people who have manufacturing jobs in South Dakota rose 1.8 percent between November 2010 and November 2011.

The 2012 South Dakota Manufacturers Register indicates that the state added 882 industrial jobs during the period.

Employment in food products manufacturing rose 2.2 percent during the time frame, and provides the state with 8,910 positions, which is more jobs than any other industrial sector. Industrial machinery and equipment is the second-largest contributor, employing 6,813.

"The recovery is gaining momentum in South Dakota and across the U.S.," Tom Dubin, president of the Evanston, IL-based publishing company, said in a statement. "The state’s business friendliness and low taxes have been a draw for a variety of enterprises."