America’s post-Covid factory boom is running out of steam

livemint.com:

More U.S. manufacturers are rethinking their plans as they brace for an extended slump in demand. Higher interest rates, rising operating costs, a strengthening U.S.

dollar and lower selling prices for commodities are dampening activity at factories across the country. Executives for the makers of long-lasting items such as cars, crop-harvesting combines and washing machines are projecting challenging business conditions for the remainder of the year. Deere & Co., the world’s largest manufacturer of farm equipment by sales, has shed about 2,100 production workers since November, or 15% of its hourly workforce.

Rival equipment maker Agco said in June it would cut 6% of its salaried workforce worldwide, or about 800 people, by the end of the year. Recreational vehicle maker Polaris this week said it would adjust production to cut back on shipments to dealers. The disclosure came as it reported a 49% drop in quarterly income and noted that sales of its motorcycles, boats and off-road vehicles all dropped as consumers pulled back on discretionary purchases.

“Retail has proven weaker than anyone expected," Chief Executive Michael Speetzen told analysts. The cloudy picture in manufacturing comes as dozens of companies in the S&P 500 index make quarterly financial disclosures. Their results will be closely monitored as inflation moderates and the Federal Reserve considers cutting interest rates.

Whirlpool said a soft housing market is holding down demand for its refrigerators, dish washers and other household appliances. MSC Industrial Direct, a distributor of tools and industrial supplies to manufacturers, said its average daily sales during its recently completed quarter decreased by 7% compared with a year earlier. The