Tag: FOMC

Monday Economic Report – April 20, 2015

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

Manufacturing production increased 0.1 percent in March. This followed three months of weaker data, including declines in both January and February. There have been some significant headwinds hitting the manufacturing sector over the past few months, including a strong U.S. dollar, weakened economic markets abroad, lower crude oil prices, the West Coast ports slowdown and weather. These challenges have slowed activity in the sector since November. The latest Beige Book discussed these headwinds. The year-over-year pace of manufacturing production in March was 2.4 percent, down from 4.5 percent in November. Meanwhile, total industrial production, which includes mining and utilities, fell 0.6 percent in March, declining for the third time in the past four months. As such, the data suggest manufacturers have started the new year on a very soft note despite optimism for better demand and output moving forward. (continue reading…)

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


Monday Economic Report – March 23, 2015

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

The U.S. economy has sputtered a bit in the early months of 2015. While it continues to grow modestly, several economic indicators are weaker than we would prefer. For example, manufacturing production decreased by 0.2 percent in February, declining for the third straight month. Many headwinds have combined to bring about this softness in the manufacturing sector, including global economic weakness, a strong U.S. dollar, the West Coast ports slowdown, a cautious consumer and the weather in some parts of the country. (continue reading…)

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


The Fed Drops “Patience” from its Monetary Policy Statement

As expected, the Federal Reserve no longer says that it can be “patient” in normalizing monetary policy. The Federal Open Market Committee (FOMC), which met on March 17 and 18, does say that “an increase in the target range for the federal funds rate remains unlikely at the April FOMC meeting.” This would suggest that the soonest that short-term rate might increase would be at the June 16-17 meeting. With that said, the fed funds rate will change only when data warrant such actions. Still, conventional wisdom holds that the FOMC will vote to raise rates at some point in 2015, likely in June, July or September. For the most part, the Fed has been on automatic pilot with its intentions for a mid-year hike, and this action clears the way for that to happen. (continue reading…)

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


Monday Economic Report – March 16, 2015

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

Global news dominated the headlines once again last week. The euro sank lower as the European Central Bank began its quantitative easing program, where it plans to purchase 1 trillion euros in government bonds over the next 18 months in an effort to stimulate faster economic growth. As a result, the euro has depreciated by nearly 25 percent over the past 10 months, down from $1.3924 per one euro on May 6 to a close of $1.0483 on Friday. There is also some expectation that it will move to parity soon, a level last seen in November 2002. (For more information on international developments, see the latest Global Manufacturing Economic Update.) (continue reading…)

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


Producer Prices for Final Demand Goods Have Fallen for 8 Straight Months

The Bureau of Labor Statistics said that producer prices for final demand goods and services surprisingly fell 0.5 percent in February. The consensus expectation had been for an increase of 0.3 percent, particularly as petroleum prices have stopped falling. Indeed, final demand energy goods prices were unchanged as a whole in February, the first non-negative number since June. Yet, lower food prices helped to reduce producer prices for final demand goods for the eighth straight month, down 0.4 percent. In particular, there were lower prices reported for dairy products, fruits and vegetables, grains, meats and shellfish – precisely the areas that have seen significant increases over much of the past year. Food prices rose 4.3 percent in 2014, but declines in the first two months of 2015 have reduced these costs by 2.6 percent. (continue reading…)

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


Monday Economic Report – February 2, 2015

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

The U.S. economy grew 2.4 percent in 2014, just barely edging out the 2.2 percent gain in 2013. Yet, that somewhat understates the strength of the economy since the winter-related weaknesses seen at this point last year. Indeed, real GDP increased by an annualized 4.1 percent during the last three quarters of 2014, and in the fourth quarter, Americans spent at a healthy 4.3 percent annual pace, the fastest rate since the first quarter of 2006. Still, the 2.6 percent growth rate in real GDP in the fourth quarter also had some red flags. Weaker growth abroad, a strengthening U.S. dollar and worries about dramatically lower energy prices have impacted capital spending and international demand negatively. Therefore, while manufacturers remain mostly upbeat about orders and production in 2015, these developments serve as a reminder of the challenges in the global marketplace right now. (continue reading…)

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


Monday Economic Report – December 22, 2014

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

Manufacturing production was up sharply in November, with output increasing 1.1 percent for the month and 4.8 percent year-over-year. These healthy gains followed a softer-than-desired autumn, and we hope it suggests that production figures will begin to match the relative optimism regarding expected demand and output seen in a number of sentiment surveys, including the latest NAM/IndustryWeek Survey of Manufacturers. Capacity utilization for the sector was also higher, up from 77.6 percent in October to 78.4 percent in November. This was the highest utilization rate since December 2007, the first month of the Great Recession. Moreover, total industrial production rose 1.3 percent, with utility output in November also up significantly. Mining production was down for the month, but up a whopping 9.3 percent over the past 12 months, with the sector benefiting from increased energy exploration. (continue reading…)

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


Federal Reserve Says That It Can Be “Patient” in Normalizing Rates

The Federal Open Market Committee (FOMC) said that it can be “patient” in normalizing rates. The participants at its December 16–17 meeting cited progress in the overall economy, including “solid [labor market] gains and a lower unemployment rate.” Moreover, the Fed noted better consumer and business spending, with a moderate pace of economic growth overall. At the same time, the housing market’s recovery has been slow, and despite recent progress, labor markets remain underutilized. (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)


Monday Economic Report – November 24, 2014

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

Central banks around the world have acted recently in an attempt to lift a sagging global economy. On Friday, for instance, the European Central Bank (ECB) announced that it has begun purchasing asset-backed securities, finally beginning a quantitative easing program that some have long sought. Earlier in the day, ECB President Mario Draghi said that “we will do what we must” to spur economic growth. In addition, the People’s Bank of China surprised markets by cutting interest rates on Friday. These actions followed the Bank of Japan’s announcement on October 31 that it would increase the amount of its monthly asset purchases. (continue reading…)

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


A Manufacturing Blog

  • Categories

  • Connect With Manufacturers

            
  • Blogroll