The Federal Reserve Bank of Kansas City said that manufacturing activity picked up somewhat in its district in November. The composite index rose from 4 in October to 7 in November, its highest level in four months. Along those lines, the pace of production (up from 3 to 9), shipments (up from zero to 7) and employment (up from 6 to 9) improved for the month. In addition, export sales (up from -9 to 8) were positive for the first time since April. Yet, growth remains far from robust, with new orders (down from 2 to 1) decelerating for the fourth consecutive month and just barely above neutral. (continue reading…)
The Bureau of Labor Statistics said that Wisconsin created the most net new manufacturing workers in October, hiring 5,400 additional employees for the month. Other states with significant increases in manufacturing employment in October included Pennsylvania (up 2,700), Indiana (up 2,500), Minnesota (up 2,300), Oregon (up 2,200) and South Carolina (up 2,100). Looking over the past 12 months, the five states with the greatest manufacturing employment gains were Indiana (up 24,100), Texas (up 14,900), Ohio (up 13,700), Wisconsin (up 12,100) and Minnesota (up 10,500). (continue reading…)
This morning the NAM and the Global Business Dialogue hosted a discussion about the Environmental Goods Agreement (EGA) negotiations underway at the World Trade Organization (WTO). NAM’s Linda Dempsey, Vice President for International Economic Affairs, spoke about the benefits to manufacturing of a broad EGA, mentioning that, “increased trade and global engagement is vital for our manufacturers. With only a 9 percent share of the global $11 trillion market in manufactured goods trade outside our borders, manufacturers can and should be able to expand commercial opportunities.
The Bureau of Labor Statistics said that consumer prices were unchanged in October. Over the past 12 months, consumer inflation has risen 1.7 percent. In addition, core prices, which exclude food and energy costs, were up 1.8 percent year-over-year. As such, core inflation continues to remain below the Federal Reserve’s stated goal of 2 percent at the annual rate, which it has now done for 20 consecutive months. Overall, these trends mirror the producer price index data released earlier in the week.
In particular, Americans continue to benefit from falling energy prices, which declined 1.9 percent in October and have dropped in each of the past four months. Since peaking in June, total consumer energy costs have decreased 5.4 percent. Indeed, we have seen the average price of regular gasoline decline from $3.64 a gallon during the week of June 23 to $2.86 a gallon this week, according to the Energy Information Administration. (continue reading…)
The Federal Reserve Bank of Philadelphia said that manufacturing activity expanded very strongly in November, with its composite index measuring an off-the-chart 40.8 for the month. This was up from 20.7 in October, and you would have to go back two decades to find a higher figure (December 1993’s 41.2 reading). In fact, 49.2 percent of respondents to the Manufacturing Business Outlook Survey said that conditions had improved in November, up from 34.2 percent who said that same thing in October. Along those lines, the Philly Fed survey has registered above average index figures since the first quarter, averaging 23.0 from April to November. That suggests that manufacturers in the district are currently very positive about their businesses. (continue reading…)
The Environmental Protection Agency (EPA) is just weeks away from proposing a new ozone standard that the NAM estimates could impose over $2 trillion in compliance costs for manufacturers. With so much at stake, manufacturers need improvements to the air permitting process so that when these new standards take hold we can still get our permits and operate our facilities. We support H.R. 4795, the Promoting New Manufacturing Act, which is on the House floor this morning. (continue reading…)
The HSBC Flash China Manufacturing Purchasing Managers’ Index (PMI) fell to neutral (50) in November, down from 50.4 in October. This was the weakest reading since Chinese respondents noted contracting levels of activity from January through May. Indeed, output contracted once again (down from 50.7 to 49.5) for the first time since May, which was not a good sign. Hiring (down from 48.9 to 48.4) was also negative for the 13th straight month. On the positive side, new orders (up from 51.2 to 51.4) edged slightly higher, and exports (down from 51.7 to 50.5) continued to expand, albeit at a much slower pace. (continue reading…)
Manufacturers continue facing congressional inaction on even the most bipartisan pieces of legislation that could help them create new opportunities for growth and jobs in the United States – the Miscellaneous Tariff Bill (MTB). For decades, the MTB has supported manufacturing jobs in the United States by cutting costs and strengthening manufacturers’ competitiveness. Under the MTB, manufacturers are permitted to import certain manufacturing inputs duty free when those products aren’t available in the United States. (continue reading…)
The Census Bureau and the U.S. Department of Housing and Urban Development said that housing data were mixed in October, but the overarching trend line remains positive. New housing starts eased somewhat, down from a revised 1,038,000 annualized units in September to 1,008,000 in October. Yet, housing permits – a proxy of future activity – rose from 1,031,000 to 1,080,000 units. That was the highest level of residential permitting since June 2008, suggesting movement in the right direction. In addition, new starts have also edged higher, up from an average of 955,167 in the first half of 2014 to 1,027,000 in the four months so far in the second half. (continue reading…)
The Affordable Care Act has a provision in it that is commonly referred to as the “Cadillac Tax.” Well, it’s not a tax on the storied line of cars manufactured by GM, it’s a tax on employee benefits – a 40 percent tax on the benefits employees receive over a certain value – it should be called the Employee Benefits Tax (EBT). (continue reading…)