Orders to rise in US – MHEDA

News Story
- 27 Jul 2017 ( #831 ) - Vernon Hills, IL, United States
2 min read
Materials handling orders in the United States will continue to rise into early next year  <br />PHOTO: DREAMSTIME.COM
Materials handling orders in the United States will continue to rise into early next year
PHOTO: DREAMSTIME.COM
The latest quarterly market report from MHEDA and ITR Economics predicts that materials handling orders in the United States will continue to rise into early next year before the rate of growth slows.

The report notes that new orders data was recently revised downward by the Census Bureau.

MHEDA also notes that the US Purchasing Managers Index accelerated into early this year. Increasing manufacturing activity, as reported by purchasing and supply executives, suggests that new orders are likely to rise for the remainder of this year. This Index has subsequently entered a declining trend, so plan for new orders to slow in 2018.

The report details accelerating growth in overall industrial products in May after
contracting since late 2015. The mining component of industrial production has
underperformed the manufacturing and utilities segments, but higher commodity
prices are helping to support recovery. MHEDA economists expect mining to rise into next year, along with manufacturing and utilities, lifting industrial production during this time.

The consumer sector has been an area of strength in recent quarters even as the
macroeconomy turned downward. Retail sales grew at a slowing rate during the
most recent recession, but remained above the year-ago level. The rate of growth
for retail sales recently ticked up and it is expected an accelerating growth trend will persist.

Disposable personal income is rising as employers compete to attract
and retain workers, increasing the resources employees have to potentially spend
on consumer goods. Industries closely connected to the consumer are likely to
benefit from these trends and should ensure that their prices are appropriate to
maximise profits as demand grows.

Within the construction industry, the construction of office buildings and warehouse buildings is growing at double-digit rates and will be particularly strong areas of opportunity in the coming quarters.

The MHEDA quarterly report is prepared by Manchester, NH-based ITR Economics.
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