That’s not to say that exports haven’t begun to slowly climb back, however. American manufacturing has surged two months in a row with a 6.4% increase in overall orders. In particular, orders for durable goods increased by 11.2% in July.
American manufacturing’s recent increase in outputs signals a global economic recovery as multiple major exporters such as China and Germany begin resuming their manufacturing operations.
Normally, the U.S. has a deficit in consumer goods and a surplus in services, such as healthcare and tourism. The service sector has shrunk to its lowest level since 2012 as travel restrictions continue to be a reality for prospective vacationers.
Multiple sectors in the U.S. economy have hedged their bets on an economic recovery by building large stockpiles of goods, hoping that demand will increase in the coming months.
American manufacturing faces big challenges. For one, COVID-19 continues to loom in the background, raising questions on workplace safety procedures and the possibility of another lockdown if cases begin to surge yet again.
