U.S. manufacturing still struggling
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The U.S. economy continues to show signs of weakness, as U.S. industrial production fell in March for the second co...
The U.S. economy continues to show signs of weakness, as U.S. industrial production fell in March for the second consecutive month by 0.5%. The drop may partly reflect the market uncertainty as a prelude to the war in Iraq, however some economists believe the trend also reflects a fundamental weakness in the U.S. manufacturing sector, according to a report in the National Post.
One key indicator of manufacturing health, factory utilization rate, fell to a 20-year low of 72.9%, the U.S. Federal Reserve Board reported. Historically factory utilization must be in the range of 80% before the onset of any significant capital spending.
Some economists believe the recovery in the U.S. economy will be aided by president George W. Bush’s proposed multi-million dollar tax cut. The tax-cut proposal will be voted on in Congress this summer.