The change in the economy with better U.S. production – Highlighted Companies in this Article Include Applied Materials Inc. (NASDAQ:AMAT)


With the US assembly lines rolled off cars with the fastest rate as compared to the past 14 years, factories were the busiest in July compared to the past five months. The economy encouraged this country to invest more in equipment.

As reported by the Federal Reserve, an increase of 0.3 percent (more than what was estimated) for the prior month was followed by a 1 percent increase at manufacturers. Industrial production increased by 0.4 percent now for the second month; this involves utilities and mines. Foreign investors decreased their holdings in government debt.

There was a drive in economic growth that continues to prevail because transportation goods and machinery outputs showed best improvement in five months.

Millan Mulraine, the strategy and research deputy head of TD Securities in New York said that the manufacturing sector seems to be doing pretty well thus the economy is growing at a better rate.

The assemblies of automobiles increased to an annual rate of 13.2 million in July which was the fastest since way back in 2000 May as stated by the data from Fed’s. Part and car production jumped up by 10.1% which was the highest since 2009 July.

Factory production in the month of July improved and not just in autos; business equipment manufacture increased by 1.3% which is the best jump since February. Consumer goods were also being produced more by the factories; furniture, appliances and other home electronics also saw an increase in production.

The 75 percent of production which comes under manufacturing was estimated to hit a high of 0.4 percent as stated by the Bloomberg survey. It was said that industrial output will increase to 0.3 percent.

The stocks dropped thus reducing weekly gains of the S&Ps 500 Index when increased pressures in Ukraine brought the demand to a high.

It was expected that improved labor conditions and stronger economy in the US will result in an increased interest rates by the Fed’s; this speculation could be put down as the reason why foreign investors went low on their US government bonds holdings and June notes.

According to the Treasury Department the total US securities’ long term net outflow and funds for short-terms that include bank transfers saw an amazing all-time peak at a value of $153.5 billion which was followed by a $33.1 billion inflow previous month. Moreover the Treasury bonds net selling of $40.8 billion, the June Figure and private investors’ notes reached their highest ever.

According to the Labor Department wholesale prices went up at a gradual pace back in July due to the highest drop in fuel prices in the past eight months.

Mining production peaked by 0.3 percent following its gain of 1.3 percent.

12 percent of other manufacturing data showed progress. There was an index of 57.1 for the previous month as stated by The Institute for Supply Management’s factory.

It was stated yesterday by Applied Materials Inc. (NASDAQ:AMAT) that orders for their third quarter of the year have increased by 24 percent as compared to the same quarter last year. The company also predicted that the forecasted sales for the fourth quarter may go over the estimates due to the increase in demand for machines.

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