Tag: hiring

Dallas Fed: Manufacturing Activity Contracted in Texas for the Fifth Straight Month

The Dallas Federal Reserve Bank said that manufacturing activity contracted in Texas for the fifth straight month. The composite index of general business conditions declined from -16.0 in April to -20.8 in May, falling to its lowest level since June 2009. Manufacturers in the district continue to struggle with lower crude oil prices; although, there might also be a sense of stabilization. As one fabricated metal manufacturing respondent said in the sample comments, “With some recovery in the price per barrel of oil, the general feeling is that our business has leveled.”

Still, these data suggest that demand and production remain very weak right now. The underlying data were mostly lower across-the-board, with declines in activity getting larger, at least for now. This included measures for new orders (down from -14.0 to -14.1), production (down from -4.7 to -13.5), shipments (down from -5.6 to -13.2), capacity utilization (down from -10.4 to -11.6), employment (down from 1.8 to -8.2) and hours worked (down from -5.0 to -11.6). Illustrating this point, 31.0 percent of survey respondents cited declining new orders for the month, with just 16.9 percent noting increases. On the other hand, capital expenditures (up from 3.3 to 3.4) continued to expand somewhat modestly, providing some degree of optimism moving forward. (continue reading…)

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Richmond Fed: Manufacturing Activity Expanded Ever-So-Slightly in May

The Richmond Federal Reserve Bank said that manufacturing activity expanded ever-so-slightly in May, an improvement after contracting in both March and April. The composite index of general business activity improved from -3 in April to 1 in May. The underlying data were also better, including new orders (up from -6 to 2) and capacity utilization (up from -4 to 7). Shipments (up from -6 to -1) continued to contract, but at a slower pace of decline for the month. At the same time, the labor market was mixed. The rate of employment growth (down from 7 to 3) eased somewhat, but the average workweek (up from 4 to 6) and wages (up from 9 to 20) were stronger. (continue reading…)

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Kansas City Fed Reported Contracting Activity for the Third Consecutive Month in May

The Kansas City Federal Reserve Bank said that manufacturing activity contracted for the third consecutive month in May. The composite index dropped from -7 in April to -13 in May, suggesting a sharper drop in activity than the month before. Indeed, several of the key data points declined at faster rates in May than in April. This included new orders (down from -12 to -19), production (down from -2 to -13), shipments (down from -7 to -9) and the average workweek (down from -10 to -14). At the same time, employment (up from -18 to -17) decreased sharply, and exports (up from -12 to -9) contracted for the fifth straight month, even as both measures fell at slightly slower paces for the month. (continue reading…)

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Philly Fed: Manufacturing Outlook Eased Slightly in May

The Philadelphia Federal Reserve Bank said that the manufacturing outlook eased slightly in May. The composite index of general business activity dropped from 7.5 in April to 6.7 in May. In general, the outlook has weakened so far this year relative to last year, with the headline measure averaging 6.1 through the first five months of 2015. This compares to the more-robust average of 25.1 observed in the second half of 2014, with the softness experienced year-to-date largely the result of a number of headwinds seen in the U.S. and global economy. At the same time, manufacturers in the Philly Fed district have reported expanding levels of activity for 15 straight months. (continue reading…)

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Markit: U.S. Manufacturing Activity Slowed in May; Europe Improved, but China Contracted Once More

The Markit Flash U.S. Manufacturing PMI declined from 54.1 in April to 53.8 in May, easing to its lowest level since October 2013. It was the second straight monthly deceleration in manufacturing activity, and the slowing in May reflected slower growth in new orders (down from 55.3 to 54.2) and output (down from 55.3 to 55.0). Exports (up from 48.8 to 49.6) continued to contract, but declined by less for the month. On the positive side, hiring (up from 53.7 to 54.3) accelerated to its fastest rate in six months. Moreover, even with some weakening in sentiment, the measures for demand and production growth for U.S. manufacturers remains decent overall. (continue reading…)

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Monday Economic Report – May 11, 2015

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

Once again, there was evidence last week that significant headwinds have dampened activity in the manufacturing sector. The sector added just 1,000 net new workers in April, marking the third consecutive month with soft hiring. The data suggest that challenges from a strong dollar, slowing growth abroad, lower crude oil prices, residual effects from the West Coast ports slowdown, a cautious consumer and weather have combined to take their toll on the economy, at least for the time being. (continue reading…)

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ADP: Hiring in the Manufacturing Sector Negative for the Second Straight Month

ADP said that manufacturing employment decreased by 10,000 workers in April. This was the second straight monthly decline, with March’s net employment loss of 3,000 employees. Overall, hiring in the sector has been very soft through the first four months of 2015, with employment growth essentially flat. This compares to roughly 18,850 workers added per month on average in the second half of 2014. The current softness has been the result of a number of headwinds in the economy. These challenges include the strong U.S. dollar, weakened export demand, lower crude oil prices, the West Coast ports slowdown, weather, and a cautious consumer. (continue reading…)

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Richmond Fed: Manufacturing Activity Contracted for the Second Straight Month in April

The Richmond Fed said that manufacturing activity remained soft in April, contracting for the second straight month. If there was a silver lining, it was that several key indicators declined by less in this report. The composite index of general business conditions improved from -8 in March to -3 in April. Along those lines, the pace of the decline eased for a number of indices, including new orders (up from -13 to -6), shipments (up from -13 to -6) and capacity utilization (up from -7 to -4). It was the third consecutive monthly decrease in new orders, reflecting weaker demand. (continue reading…)

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Dallas Fed: Manufacturers Continue to Struggle on Crude Oil, Dollar Woes

The Dallas Federal Reserve Bank said that manufacturing activity contracted in Texas for the fourth straight month. The composite index of general business conditions rose from -17.4 in March to -16.0 in April, suggesting a slightly slower pace of decline for the month. Yet, it is clear that manufacturers in the district are struggling with lower crude oil prices and a stronger U.S. dollar. Each was mentioned several times in the sample comments, providing a double whammy to the Texas economy. Nearly 28 percent of manufacturing respondents to the survey suggested that conditions had worsened in April, versus 11.7 percent indicating some improvement. (continue reading…)

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Kansas City Fed: Manufacturing Sentiment Fell Further in April

The Kansas City Federal Reserve Bank said that manufacturing sentiment fell further in April, contracting for the second straight month. The composite index of general business conditions declined from -4 in March to -7 in April. The sample comments tick off a number of challenges for manufacturers in the district, including the strong U.S. dollar, lower crude oil prices, continuing logistics problems from the West Coast ports slowdown and global competition. The index for new export orders (down from -9 to -12) was negative for the fourth consecutive month, reflecting the dollar’s strength and weaknesses abroad. (continue reading…)

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