In another encouraging sign for the U.S. economy, a new private report shows U.S. manufacturers are continuing to become more competitive. This trend has been underway for some time but the study of further confirmation of this trend is positive.
What’s the point? Manufacturing is increasingly important for the long-term health of the U.S. economy especially when consumer spending may be restrained on a secular basis (for a number of reasons). Increased competitiveness of the U.S. manufacturing base means these companies will benefit from growth of both U.S. and foreign economies. This should translate into stronger secular earnings for these companies and adds another buttress for U.S. economy and financial markets.