American manufacturing is booming under President Joe Biden, especially in some southern and western states. The U.S. economy has added 800,000 jobs in the field since Biden took office, with Texas gaining the most — 86,000 between January 2021 and May 2023. California, Florida, Ohio and Georgia round out the top five states with the most jobs added, but Nevada saw the largest percentage increase, at 15%. Montana and Wyoming also saw notable increases of 11% and 10% respectively. The sector could be headed for a slowdown, however. The Institute for Supply Management’s manufacturing gauge fell to 46% in June, its lowest reading in over three years.
- One group missing out on the new jobs, according to Bloomberg: women.
By Emma W. Thorne, Editor at LinkedIn News
Morgan Stanley credits Bidenomics for ‘much stronger’ than expected GDP growth
- President Joe Biden’s economic policies drove an unexpected economic surge that has forced Morgan Stanley to make a “sizable upward revision” in its GDP forecasts.
- Biden’s 2021 infrastructure bill has created “a boom in large-scale infrastructure,” wrote MS analysts, while domestic business investment “is rebounding, led by manufacturing.”
Biden’s Infrastructure Investment and Jobs Act is fueling a surge in large-scale infrastructure projects, as noted by Ellen Zentner, chief U.S. economist for Morgan Stanley. Alongside the growth in infrastructure, there is a noticeable uptick in strength within manufacturing construction. This expansive development encompasses various sectors, with notable trends such as the increasing demand for sustainable and durable solutions, including the rising popularity of resin flooring in industrial settings. Hire the best flooring contractors near me to help you.
“The economy in the first half of the year is growing much stronger than we had anticipated, putting a more comfortable cushion under our long-held soft landing view,” Zentner wrote.
“The narrative behind the numbers tells the story of industrial strength in the U.S,” Zentner wrote.
Morgan Stanley’s revision came at a pivotal time for the Biden White House. The president has spent the summer crisscrossing the country, touting his economic achievements. “Together we are transforming the country, not just through jobs, not just through manufacturing, but also by rebuilding our infrastructure,” Biden said Thursday during a visit to a Philadelphia shipyard.
In addition to his legacy, Biden has also staked his 2024 reelection bid on Bidenomics, betting that strong economic growth and a campaign built around kitchen table issues will ultimately drown out Republicans’ culture war outrage.
This could be a risky wager, however. The latest CNBC All-America Economic Survey, released Thursday, found that just 37% of respondents approved of Biden’s handling of the economy, while 58% disapproved. Only 20% of Americans agreed that the economy was excellent or good, while a whopping 79% said it was just fair or poor, CNBC’s poll found.
Republicans have seized on voters’ economic pessimism to argue that Biden is ignoring everyday Americans’ ongoing challenges with high interest rates and inflation that has fallen some, but still sits above pre-pandemic levels.
“Bidenomics is about blind faith in government spending and regulation,” GOP House Speaker Kevin McCarthy said in a statement Friday. “It’s an economic disaster where government causes decades-high inflation, high gas prices, lower paychecks and crippling uncertainty that leaves America worse off.”
With 16 months to go before Americans cast their ballots for president, Biden’s political fortunes, for the moment, appear to be improving along with the economy.
“This report confirms what we’ve long said: Our strong and resilient economy is Bidenomics in action,” White House assistant press secretary Mike Kikukawa said in an email to CNBC.
“The president’s economic agenda is spurring investments in manufacturing and infrastructure that are creating jobs and supporting workers.”
