4 Mutual Funds To Buy As U.S. Industrial Production Surges

On Jan. 17, the Federal Reserve stated that industrial production in the United States for December had surged, buoyed by an increase in mining and utilities production. Unusually cold weather conditions led to increased demand for heating, which also gave a boost to the industrial activity in the country.

Moreover, improving global economic conditions and strengthening U.S. exports have positively impacted industrial activity. This goes without saying that the implementation of the GOP tax reform would improve domestic industrial production further. Such favorable conditions call for investing in a portfolio of mutual funds from this space.

U.S. Industrial Production Gains Steam

Per the report by the Federal Reserve, Industrial Production in the United States rose by 0.9% in December. The consensus estimate for the period was a meager increase of 0.4%. Economists have confirmed that such a rise in industrial production was boosted by increased demand for heating as extremely cold weather gripped parts of the country.

Mining production rose 1.6% in December after oil and gas drilling activity resumed in the country. This contributed to most of the gains for industrial production. Further, a rise in utilities production by 5.6% also increased industrial activity.

The Fed reported that higher demand for utilities resulted in an increase in consumer spending, which led to higher economic growth in the fourth quarter. Such an event also boosted industrial activity in the United States. In 2017, industrial output increased 1.8%, marking the biggest rise since 2014.

Meanwhile, analysts are of the view that the $1.5 trillion tax reform will lead industrial production higher in 2018. The sector has also benefited from improving global economic conditions and a weakening dollar that resulted in strengthening exports.

4 Best Funds to Buy Now

Given such positives, we have highlighted four industrial mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging three and one-year returns. Additionally, the minimum initial investment is within $5000.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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