US south, west to mostly benefit from Biden's economic policies: Fitch

ISTANBUL

The economic policies of US President Joe Biden’s administration will provide a boost to American manufacturing output and jobs mostly in the southern and western parts of the country, Fitch Ratings said Thursday.

"Investments pursuant to the Inflation Reduction Act (IRA) and CHIPS and Science Act (CHIPS Act) will provide a significant boost to semiconductor, electric vehicle (EV) and battery manufacturing, which represent around 60% of total announced spending," it said in a statement.

Nearly half of all planned investments are going to the southern states of the US, it added.

The state of Texas will benefit the most by receiving 20% of all announced manufacturing investments and the most new jobs, according to the agency.

Overall announced investments as a percent of state GDP will be for Arizona, West Virginia and Idaho at 17%, 15% and 14%, respectively, it said.

The states of Georgia, North Carolina, Michigan and Ohio are expected to gain a large majority of new jobs, mostly in EV and battery manufacturing, said the agency.

These states, along with South Carolina, Kentucky, Nevada, Tennessee, Indiana, Kansas, Arizona and West Virginia, are expected to receive the largest EV and battery manufacturing investments as a percent of state GDP, ranging between 1.3% and 3.8%, according to the statement.

Investments announced through Jan. 31 this year are estimated at $640 billion, creating around 300,000 jobs, or 2% of current manufacturing jobs.

"Job growth will be concentrated in states that already have relatively large manufacturing sectors," said Fitch.

"California, Texas and Ohio will continue to lead the US in the share of total manufacturing jobs."