NAM report says economy growing after ‘underwhelming’ start to 2016

The National Association of Manufacturers (NAM) has released its latest manufacturing economic report showing what appears to be “mixed signals” with the U.S. manufacturing sector.

According to the report, “the overall picture remains the same – a midsummer economy that is struggling to gain traction after an underwhelming first half.”

The manufacturing industry’s last two months of activity were characterized as “two steps forward in July and one step back in August,” yet, “we can clearly distinguish the signals that point to a strengthening recovery as the year proceeds, especially in manufacturing.”

The report continued: “Flash PMIs retreated a little in August, but remained above the breakeven 50 mark, indicating continued manufacturing growth. … Advanced durable goods orders in July were solid. New orders grew 4.4 percent month over month, seasonally adjusted (SA). Excluding transportation, new orders increased 1.5%, and excluding defense, new orders increased 3.8%. Core capital goods orders (non-defense, excluding aircraft), a proxy for the private investment climate, grew 1.6% month over month, SA. Unfilled orders for manufactured durable goods fell 0.1% in July, and inventories increased 0.3% — a predictor of a possible softening in August.”