Wholesale trade and manufacturing prove to be mutually beneficial

October 7, 2011

The U.S. economy is considered to be in something of a transitional period, caught between the dire situation of the past recession and an ideal status of productivity. Two segments of the overall economy, wholesale trade and manufacturing, have been subject to slow but steady gains recently, to their mutual benefit.

According to the Boston Globe, wholesale businesses are projected to experience a sales rise of 0.2 percent for the month of August. Concurrently, the Institute of Supply Management (ISM) reported a 1 percent increase from 50.6 to 51.6 between August and September. These separate business sectors benefit each other, since increased manufacturing production allows wholesale retailers to restock their warehouses.

Earlier in the year, neither of these sectors were performing well. Wholesale and manufacturing were suffering declines due to various circumstances – the former due to overall problems with the economy, the latter due to supply chain interferences partially stemming from the natural and nuclear disasters in Japan.

However, those trends have reversed, and conservative projections seem to indicate that both manufacturing and wholesale trade will continue to grow slightly.

The Bureau of Labor Statistics indicates that U.S. manufacturing employment declined slightly in September by 13,000 but was essentially unchanged, as it has been for the past two months.