A recent government report indicates that demand for goods produced by American factories rose in November at the fastest pace in four months, and this increase in orders could have an impact on manufacturing staffing.
Data provided by the Commerce Department indicated that orders for factory goods rose 1.8 percent in November after revised numbers showed that the metric dropped 0.2 percent the previous month, according to Bloomberg. Demand for electronics and computers declined, but the increase in demand for metals, aircraft and autos made up for the drop.
The media outlet reports that slim inventories combined with strong consumer spending should spur expanding production, contributing to growth in gross domestic product. However, the decline in demand for capital goods like computers could signal that business investment is decreasing.
"Manufacturing is holding up fairly well," Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, told the media outlet. "Business investment has been very strong during this recovery, so some softening isn’t surprising."
A report released by the Institute for Supply Management indicated that manufacturing activity rose more than expected in December, with the Purchasing Managers Index rising to 53.9 from the previous month's 52.7. The report also indicated that hiring in factories picked up during the month.
"This report for November activity feels like somewhat old news since the state of manufacturing in December has already been indicated in yesterday’s ISM report and it appears from that survey that manufacturing growth is picking up," John Ryding and Conrad DeQuadros, analysts for RDQ Economics, wrote in a note to clients, according to The Associated Press.
Evidence of manufacturing staffing picking up can be seen in North Carolina, where a company plans to hire 166 people in Cleveland County, Charlotte Business Journal reports. The electric manufacturer plans to purchase a 270,000-square-foot facility on U.S. Highway 74 to increase the production of electric motors.
The electric manufacturer currently has a facility in Kings Mountain with 530 employees, and plans to invest $17 million in its new production facility, according to the media outlet. The company is currently scheduled to receive various economic incentives including $780,000 from the Rural North Carolina Center and $400,000 from the One North Carolina Fund.
The rising factory orders as well as the hiring in North Carolina could help to spur further manufacturing staffing.