Author Archive

Global Manufacturing Economic Update – December 12, 2014

Here are the files for this month’s Global Manufacturing Economic Update:

It has become increasingly clear over the past few weeks that North America stands out as a bright spot in an ever-challenging global economic environment. Real GDP in the United States grew an annualized 4.2 percent in the second and third quarters, and U.S. manufacturers remain mostly optimistic about the next year. Indeed, the U.S. economy is expected to expand by around 3 percent, its fastest rate in a decade. Likewise, Canada and Mexico — our two largest trading partners — have made improvements in their respective economies since earlier this year. Canada has the distinction of having the highest purchasing managers’ index (PMI) of any of our top 10 trading partners, holding steady in November at 55.3. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


University of Michigan: Consumer Confidence Soared to its Highest Level Since January 2007

Preliminary consumer confidence numbers soared to their highest level since January 2007, according to the University of Michigan and Thomson Reuters. The Consumer Sentiment Index rose from 88.8 in November to 93.8 in December. Measures for the current (up from 102.7 to 105.7) and forward-looking (up from 79.9 to 86.1) economic outlook were both higher for the month. This data suggests that Americans were more upbeat in their assessments of the economy, perhaps boosted by improvements in the labor market and by cheaper gasoline prices. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Producer Prices for Final Demand Goods Fell in November for the Fifth Straight Month

The Bureau of Labor Statistics said that producer prices for final demand goods and services declined 0.2 percent in November. Producer prices for final demand goods fell for the fifth straight month, down 0.7 percent or 1.7 percent since June. Much of that decline, as you might expect, stemmed from reduced energy costs, which has decreased 8.8 percent since June and was off 3.1 percent in November. Of course, petroleum prices have continued to fall since then, with West Texas intermediate crude selling for less than $59 a barrel today, a level last seen in mid-2009. This has helped to reduce overall pricing pressures in the economy. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Holiday Sales Have Gotten Off to a Strong Start

The Census Bureau provided encouraging news about retail sales growth in November. Retail spending was 0.7 percent in November, extending the revised 0.5 percent growth seen in October. This is noteworthy because it will help to erase anxieties about holiday spending seen in prior estimates. On a year-over-year basis, retail spending has increased 5.1 percent in November, a relatively healthy pace, up from 4.5 percent in October. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Manufacturers Posted Slightly Fewer Openings in October, but Still More than Earlier in the Year

The Bureau of Labor Statistics said that manufacturing job openings eased slightly, down from 293,000 in September to 290,000 in October. Nonetheless, the sector has seen improvements in the pace of job postings, with an average of 294,000 over the past six months (May through October). This represents progress since February’s rate of 258,000, the low point of 2014 so far. In October, job openings for durable good firms were up from 179,000 to 190,000; whereas, postings for nondurable goods businesses dropped from 115,000 to 100,000. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


NFIB: Small Business Optimism Hit a Pre-Recessionary High in November

The National Federation of Independent Business (NFIB) said that small business sentiment reached a pre-recessionary high in December. The Small Business Optimism Index rose from 96.1 in October to 98.1 in November, its highest level since February 2007. This is a significant milestone, particularly given the fact that smaller firms have struggled much longer than their larger counterparts to see progress in terms of activity and outlook. Along those lines, the index remains below 100, a level that would indicate strong growth in the sector. Still, this latest data suggests movement in the right direction. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Monday Economic Report – December 8, 2014

Here is the summary for this week’s Monday Economic Report: 

This morning, we will release the results from the latest NAM/IndustryWeek Survey of Manufacturers. Business leaders continue to reflect optimism about the coming months, with 91.2 percent of survey respondents saying they are either somewhat or very positive about their own company’s outlook. Moreover, manufacturers predict growth of 4.5 percent in sales and 2.1 percent in employment  over the next 12 months, with both experiencing the strongest pace in at least two years. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Factory Orders Declined in October for the Third Straight Month

The Census Bureau said that new factory orders declined 0.7 percent in October, extending the 0.5 percent decrease observed in September. It was the third straight monthly decline; although, August’s fall was the response from surging aircraft orders in July. Overall, the October numbers were a disappointment, with softness across-the-board. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


U.S. Trade Deficit Edged Marginally Lower in October

The Bureau of Economic Analysis and the Census Bureau said that the U.S. trade deficit edged marginally lower, down from $43.60 billion in September to $43.43 billion in October. The increase in goods exports (up from $136.04 billion to $138.05 billion) essentially matched the gain in goods imports (up from $198.74 billion to $200.72 billion), with the service sector goods surplus rising from $19.10 billion to $19.24 billion.

Petroleum exports have fallen from $14.13 billion in August to $10.98 billion in October. Much of this decline can be explained by lower crude oil costs. Interestingly, however, petroleum imports have declined by less, down from $27.26 billion in August to $26.22 billion in October. As a result, the petroleum trade deficit has risen from $13.13 billion in August to $15.24 billion in October, its highest point in five months. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


Jobs Numbers Strong in November; However Headwinds Remain

The Bureau of Labor Statistics said that manufacturers added 28,000 net new workers in November, extending the revised increase of 20,000 in October. This was a relatively strong number, suggesting that the manufacturing sector has averaged just shy of 15,000 additional employees per month through the first 11 months of 2014. Since the end of 2009, manufacturers have hired an additional 740,000 workers on net.

These data show that the more-robust growth in new orders and output seen in other indicators are beginning to translate into healthier hiring figures. Indeed, manufacturing leaders remain mostly upbeat in their outlook, which should bode well for hiring in the sector as we move into 2015. At the same time, there also continues to be worries about the global economy as well as concern over other headwinds such as rising health care costs and regulatory burdens. (continue reading…)

VN:F [1.9.22_1171]
Rating: 0.0/5 (0 votes cast)


A Manufacturing Blog

  • Categories

  • Connect With Manufacturers

            
  • Blogroll