The US oil industry is not going through the best of times as it contracts on the back of the strengthening dollar which affects overseas sales. As a result, most US manufacturers have been negatively impacted by fluctuations on the forex market and unstable raw materials’ prices.
Analysts say that despite measures to recover the US economy and normalize the monetary policy, the US industry is teetering on the brink of recession. Its rapid slowdown confirms that. According to Chad Moutray, chief economist at the National Association of Manufacturers, last year the US manufacturing production grew 4.5% annually. This year he expects production to grow only 1.4%.
The growth was affected by China's economic slowdown and turmoil on global markets.
That happened against the backdrop of sharp declines of other trading partners’ currencies and amid falling global demand.
Experts believe that despite these issues the US economy will overcome the industrial slowdown as the country’s manufacturing and exports account for no more than 12% of GDP each. The US economy depends more on American consumers than its manufacturers or economic situation in China.
