Unexpected growth in demand for American-made goods for the month of June has economists seeing a strong manufacturing industry throughout the year.
The Commerce Department reported an increase in factory orders of 1.5% in June and 2.3% in May, according to Reuters.
"We expect a solid growth path for the factory data through 2021, capped by capacity constraints and supply chain problems," Mike Englund, chief economist at Action Economics in Boulder, Colorado, told Reuters.
According to a survey conducted by Reuters, economists forecasted factory orders increasing 1%. The rise in demand for goods through the COVID-19 pandemic resulted in boosted manufacturing, over 18.4% on a year-on-year basis, Reuters reported.
With stay-at-home orders and heightened restrictions during the surge of the pandemic, the manufacturing industry turned strong. It accounts for 11.9% of the U.S. economy, Reuters reported.
Factories have been continuously busy producing machinery, computers, electronic products, electrical equipment, appliances and components. The growth in June for factory inventories was higher than what the government projected in its advance forecast for second-quarter gross domestic product.