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manufacturing activity Archives - Shopfloor

New York Fed: Manufacturing Activity Expanded in October at a 3-Year High

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The Empire State Manufacturing Survey expanded strongly in October, growing at a three-year high. The composite index of general business conditions jumped from 24.4 in September to 30.2 in October, a pace not seen since September 2014. Activity in the New York Federal Reserve Bank’s district was buoyed by healthy monthly improvements in shipments (up from 16.2 to 27.5) and employment (up from 10.6 to 15.6), with hiring expanding at its fastest rate in eight years. At the same time, both new orders (down from 24.9 to 18.0) and the average workweek (down from 5.7 to zero) eased. Demand remained relatively robust, however, with 32.2 percent of respondents saying that orders had increased in this report.

Meanwhile, manufacturers in the New York region remained very upbeat about the next six months. The expectations composite index rose from 39.3 to 44.8, and it has averaged 41.2 over the past 12 months. In the 12 months prior to that, the average was 27.2, illustrating the acceleration in optimism seen for much of this year. Along those lines, growth in new orders (up from 43.7 to 44.8), shipments (up from 37.0 to 43.4) and employment (up from 13.8 to 17.2) strengthened in October to decent levels, with 55.4 percent of those completing the survey anticipating more sales in the months ahead. Pricing pressures (down from 42.3 to 41.4), capital expenditures (down from 24.4 to 21.9) and technology spending (down from 17.1 to 16.4) were also expected to grow strongly over the next six months, even with each decelerating slightly in this release.

Kansas City Fed: Manufacturing Activity Expanded at a Six-Month High in September

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded at a six-month high in the latest survey data. The composite index of general business conditions edged up from 16 in August to 17 in September, its highest point since February. With that said, the underlying data were mixed. On the positive side, there was continued strength in production (unchanged at 22), shipments (up from 23 to 25) and employment (up from 14 to 18). Exports (up from 4 to 6) also grew modestly. At the same time, new orders (down from 25 to 10) and the average workweek (down from 9 to 7) slowed somewhat in September, even as the pace of growth for each remained decent overall.

Meanwhile, manufacturers continued to be optimistic about the next six months. The forward-looking composite index increased from 23 to 26. Roughly half of those completing the survey expect sales, production and shipments to be higher moving forward, with 37 percent and 32 percent seeing more hiring and capital spending, respectively. Beyond those issues, 49 percent of business leaders also predict a pickup in raw material costs in the months ahead.

Durable Goods Orders Bounced Back in August, with Strong Year-Over-Year Growth

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The Census Bureau said that growth in new durable goods orders increased by 1.7 percent in August, bouncing back somewhat after dropping 6.8 percent in July. This data has been highly volatile over the past three months, largely on large swings in nondefense aircraft and parts orders, which are often bulked together surrounding major trade shows. Excluding transportation equipment, new durable goods orders were up by 0.2 percent in August, easing from the 0.8 percent gain seen in July. New durable goods orders have generally trended in the right direction over the course of the past 12 months. New durable goods have risen 5.1 percent since August 2016, or excluding transportation equipment, the year-over-year gain was 6.1 percent.   Read More

Richmond Fed: Manufacturing Activity Expanded More Strongly in September

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The Richmond Federal Reserve Bank said that manufacturing activity in its district expanded more strongly in September, with activity accelerating at its fastest pace since February. The composite index of general business activity rose from 14 in August to 19 in September. Overall, this report continues to reflect a manufacturing sector that has made significant progress over the past year, and in September, new orders (up from 17 to 20), shipments (up from 8 to 22), capacity utilization (up from 10 to 16) and the average workweek (up from 10 to 16) indicated relatively solid growth. At the same time, employment (down from 17 to 15) in the mid-Atlantic region slowed slightly for the month, even as hiring activity remained quite robust. Read More

Dallas Fed: Manufacturing Activity Strengthened in September

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The Dallas Federal Reserve Bank reported that manufacturing activity strengthened once again. The composite index of general business activity rose from 17.0 in August to 21.3 in September, its fastest pace since February. Overall, the data reflect continued progress in the Texas economy, buoyed by a recovery in the energy sector most importantly. One year ago, the headline index was -2.1, and year-to-date through the first three quarters of 2017, it has averaged 18.6, illustrating significant improvements over the past 12 months. In September, the underlying data were mixed but still encouraging overall. This included new orders (up from 14.3 to 18.6), production (down from 20.3 to 19.5), shipments (up from 18.1 to 27.4), employment (up from 9.9 to 16.3), hours worked (up from 14.5 to 18.4) and capital expenditures (down from 14.5 to 13.6).

Moving forward, manufacturing leaders remained very positive about the next six months, with the forward-looking measure increasing from 29.2 to 34.5. More than 55 percent of those completing the survey felt that production would rise in the coming months, and 45.1 percent and 34.6 percent anticipate more hiring and capital spending, respectively. At the same time, pricing pressures for raw materials (up from 26.0 to 35.9) were also anticipated to accelerate somewhat.

New York Fed: Manufacturing Activity Growth Remained Strong in September

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The Empire State Manufacturing Survey continued to reflect strong growth in the sector in September. The composite index of general business conditions remained highly elevated despite easing from 25.2 in August, its highest level in nearly three years, to 24.4 in September. Encouragingly, there were faster paces of expansions in September for new orders (up from 20.6 to 24.9), shipments (up from 12.4 to 16.2) and employment (up from 6.2 to 10.6). The shift for new orders stemmed mostly from a decline in the percentage of respondents saying that their sales had declined relative to the month before, down from 21.5 percent in August to 13.7 percent in September. In this release, 38.7 percent said that new orders had risen for the month, down from 42.0 percent. Beyond those measures, the average workweek (down from 10.9 to 5.7) increased at a softer rate in September, but pricing pressures (up from 31.0 to 35.8) accelerated.

Meanwhile, manufacturers in the New York Federal Reserve Bank’s district remained upbeat about the next six months despite most of the forward-looking gauge pulling back a little in this report. The expectations composite index decreased from 45.2 to 39.3 but continued to suggest strong growth for the months ahead. More than 55 percent of those completing the survey predict better new orders over the next six months, with 26.0 percent and 32.5 percent anticipating increased hiring and capital spending, respectively. Technology spending (up from 9.3 to 17.1) also picked up.

ISM: Manufacturing Activity Expanded at a Six-Year High in August

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The Institute for Supply Management (ISM) reported that manufacturing activity grew robustly in August, expanding at its fastest pace since April 2011. The ISM Manufacturing Purchasing Managers’ Index (PMI) increased from 56.3 in July to 58.8 in August. The sample comments tended to echo the strong data, with mostly positive feedback from respondents on healthy gains in sales and an optimistic business outlook. Along those lines, the indices for new orders (down from 60.4 to 60.3) and production (up from 60.6 to 61.0) exceeded 60 for the third straight month (and seven of the past nine months), illustrating strong growth in demand and output in the sector overall. In contrast, one year ago, the manufacturing sector contracted slightly with the headline PMI at 49.4, and since then, we have seen tremendous progress. Read More

New Factory Orders Soared in June due to Strong Aircraft Sales

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The Census Bureau said that new factory orders rose by 3.0 percent in June, up from $467.1 billion to $481.1 billion, rebounding from 0.3 percent declines in both April and May. This was the highest level since October 2014. Nonetheless, the bulk of that increase stemmed from a jump in nondefense aircraft and parts orders, up from $11.0 billion to $25.3 billion, likely centering around the International Paris Air Show. As a result, durable goods orders leapt 6.4 percent for the month, but edged up by just 0.1 percent with transportation equipment excluded. At the same time, nondurable goods orders were off by 0.3 percent in June, declining for the second straight month. Overall, new factory orders – which have struggled mightily over the past couple years – have largely trended in the right direction more recently, up 9.8 percent since June 2016. Excluding transportation, the gains were a still-healthy 6.9 percent year-over-year. Read More

ISM: Manufacturing Activity Expanded Strongly in July but Eased from June’s 34-Month High

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The Institute for Supply Management (ISM) said that manufacturing activity continued to expand strongly in July, even as it pulled back from nearly a three-year high in June. The ISM Manufacturing Purchasing Managers’ Index (PMI) decreased from 57.8 in June, its strongest reading since August 2014, to 56.3 in July. Despite some easing in many of the key measures in this survey, the underlying data reflect healthy expansions in demand and output, with manufacturers mostly upbeat in their outlook. The sample comments tend to echo these sentiments, noting strong sales, exports and profits. In addition, better growth in the sector has exacerbated workforce challenges, with one respondent suggesting, “Labor shortages are pretty universal, leading to longer lead times through the supply chain.” Read More