The blue-collar sector, particularly in construction, has experienced positive growth which US President Joe Biden is pleased about.
Amid the potential threat of recession in America, recent data from the Commerce Department shows a 71% increase in construction spending by manufacturers compared to the previous year.
Additionally, there has been a rise of 106,000 employees in manufacturing in August compared to the previous year, despite surveys indicating a decrease in consumer demand posing a potential recession in America.
The US economy has been doing well, but there are concerns that this may not last as the Feds recently approved raising interest rates to their highest level in over 22 years in an effort to combat inflation, but this move might spark a possible recession in America.
The US central bank is planning to increase interest rates to combat inflation, but experts are unsure of its impact on the economy. However, economists believe that the recent financial support given to manufacturing will help during a potential recession in America.
Some manufacturing leaders are optimistic about their ability to manage if there’s a recession in America.
Concerns arose about a possible recession in America as the Federal Reserve was implementing tighter monetary measures, leading to increased interest rates, according to usbank.com.
Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, suggests that the favorable data observed thus far in the year is dispelling concerns about a potential recession in America in the near future, usbank.com added.