5 Of The Best Manufacturing Stocks Right Now
Zacks Investment Research | Sep 05, 2017 12:30AM ET
August witnessed the strongest manufacturing activity in more than six years, according to the latest report by the Institute for Supply Management (ISM). Such an upbeat reading comes at an opportune time when manufacturers have added a record number of jobs, both in the private and public sectors.
This boost in jobs, particularly in the manufacturing sector, is reflective of one of the Trump administration’s key campaign promises. In fact, Trump’s plan of comprehensive tax reform should help U.S. manufacturers create more jobs. With this in mind, adding stocks from the manufacturing sector could be a lucrative move for your portfolio
ISM Manufacturing Highest in 6 Years
The ISM Manufacturing Index by 2.5% to 58.8% in August, up from July's level of 56.3% and representing the highest level recorded since April 2011.
Out of the 18 manufacturing industries, 14 have registered growth. Investors should note that the five key indicators that are monitored by the ISM Manufacturing Index are new orders, production, employment, inventories and supplier deliveries.
Although the index for new orders decreased 0.1% to 60.3%, the employment index jumped 4.7% to 59.9% — the highest in more than six years; the production index improved 0.4% to 61% as well.
The ramping up of manufacturing activity shows increased raw material purchase by managers to meet heightened demand.
Index Shows Growth in U.S. Economy
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