Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

July 09, 2010 [past updates]


U.S. Manufacturing Trends Current Period Year-to-Date
Wage Rates down up
Profits up up
Employment up down
Production up up
Capacity Utilization up up
Productivity up up
Exports down up
Goods Shipments down up


Biweekly Notes

US manufacturing growth slows: ISM

The US manufacturing sector grew for the 11th consecutive month in June, but at a slower clip than expected, an industry survey said Thursday. "The manufacturing sector continued to grow during June; however, the rate of growth... slowed when compared to May," said Norbert Or of the Institute of Supply Management (ISM). The firm's manufacturing index, also known as the purchasing managers index, stood at 56.2 percent, down from 59.7 percent seen in May. The reading -- which compiles managers' reports on everything from new orders to stock inventories -- was well below market expectations of 59 percent. A reading above 50 percent indicates an expanding manufacturing sector. The ISM's Or said the slowdown was to be expected after months of robust growth.

(AFP| Google News| July 1, 2010)
www.google.com

AP Analysis: Economic stress is easing more slowly
Two-thirds of U.S. counties became economically healthier in May, thanks to more manufacturing jobs in the Midwest and fewer home foreclosures in the Sun Belt, according to The Associated Press' monthly analysis of conditions around the country. Yet the improvement appeared to slow in May compared with April, the AP's Economic Stress Index shows. And concerns are arising that the nation's recovery is losing momentum. Economic stress declined month to month in 33 states in May, aided by lower unemployment. In April, by contrast, stress had eased in every state except two - and in 90 percent of the nation's 3,141 counties. Bankruptcy rates around the nation also inched up in May. The AP's Economic Stress Index calculates a score for each county and state from 1 to 100 based on unemployment, foreclosure and bankruptcy rates. A higher score indicates more economic stress. Under a rough rule of thumb, a county is considered stressed when its score exceeds 11. The AP's index found the average county's Stress score in May was 10.3, down from 10.6 in April. It was the lowest score since November's 10.2.

(AP| The Seattle Times| July 6, 2010)
seattletimes.nwsource.com

Back to Top


U.S. Manufacturing Key Facts

Manufacturing Wage Rates updated

  • In June 2010, average hourly earnings in manufacturing were $18.54 (preliminary), down 0.11 percent from May 2010’s $18.56 (preliminary), and up 2.04 percent from June 2009’s $18.17.

    (BLS/DOL Employment data from “The Employment Situation, USDL 10-0886,” released July 2, 2010; next release is August 6, 2010)
    http://www.bls.gov/news.release/pdf/empsit.pdf

Manufacturing Wage Rates (Quarterly, Yearly)

  • During the first quarter of 2010, hourly compensation from previous quarter, annual rate remained the same in total manufacturing, down 0.4 percent in durable manufacturing and up 0.3 percent in nondurable manufacturing.

  • When consumer prices were taken into account, real hourly compensation from previous quarter, annual rate (revised) of all manufacturing workers decreased 1.5 percent in the fourth quarter, and decreased 0.7 percent (revised) in the annual rate of 2009.

  • In the first quarter of 2010, hourly compensation of all manufacturing workers grew 1.8 percent (revised), compared to a 5.4 percent increase during the first quarter of 2009. Real hourly compensation in the total manufacturing sector decreased 0.6 percent (revised) in the first quarter of 2010, compared to 5.5 percent increase in the first quarter of 2009.

    (BLS/DOL Productivity data from “Productivity and Costs, First Quarter 2010, Revised,” USDL 10-0747, released June 3, 2010; next release is August 10, 2010)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Profits

  • In the first quarter of 2010, manufacturing profits increased 29.4 percent, or $47.2 billion, to $207.7 billion from $160.5 billion in the third quarter. Compared with first quarter profits of 2009, manufacturing profits were up $86.1 billion in the first quarter of 2010.

  • First quarter 2010 profits for all non-financial industries (manufacturing being a subcategory) increased 20.6 percent from the fourth quarter of 2009 to $1027.1 billion.

    (BEA/DOC GDP data from “Gross Domestic Product and Corporate Profits, BEA 10-31,”released June 25, 2010; next release is July 30, 2010)
    http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp1q10_3rd.pdf

       

Back to Top


Manufacturing Employment updated

  • In June, 2010, manufacturing employment went up, with an increase of 9,000.

  • In June, durable goods manufacturing gained 13,000 jobs, with increases in fabricated metal products (6,600), machinery (3,500), primary metals (2,500), wood products (1,500), computer and electronic products (1,100), and furniture and related products (700). Job losses occurred in nonmetallic mineral products (-1,500), miscellaneous manufacturing (-900), transportation equipment (-400), and electrical equipment and appliances (-200).

  • Nondurable goods manufacturing lost 4,000 jobs with decreases in food manufacturing (-2,200), printing and related support activities (-2,100), chemicals (-1,700), beverages and tobacco products (-1,300), paper and paper products (-200), and petroleum and coal products (-100). However, job gains occurred in plastics and rubber products (2,700), leather and allied products (400), and apparel (100). There was no change in textile product mills and textile mills.

  • The manufacturing employment of 11.7 million workers represents 8.9 percent of total non-farm employment.

    (BLS/DOL Employment data from “The Employment Situation, USDL 10-0886,” released July 2, 2010; next release is August 6 2, 2010) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production

  • In May 2010, manufacturing production was up 0.9 percent from previous month and was 7.9 percent above its year-earlier level.

  • Production of durable goods was up 1.7 percent from previous month. The durable manufacturing industry that registered increases in output Motor vehicles and parts (5.5 percent), wood products (3.7 percent), furniture and related products (2.4 percent), primary metal (2.3 percent), machinery (2.0 percent), fabricated metal products (1.9 percent), computer and electronic products (1.4 percent), miscellaneous (1.3 percent), and nonmetallic mineral product (0.4 percent). The durable industry that registered decreases in output included Electrical equip., appliances, and components (-0.8 percent), and aerospace and miscellaneous transportation equipment (-0.8 percent).

  • The production of nondurable goods remained the same from previous month. The nondurable manufacturing industries that registered increases in output included Printing and support (1.7 percent), textile and product mills (1.4 percent), food, beverage, and tobacco products (1.0 percent), plastics and rubber products (0.9 percent), and paper (0.5 percent). The nondurable industry that registered decreases in output included petroleum and coal products (-2.2 percent), chemical (-0.8 percent), and apparel and leather (-0.2 percent).

  • The index for other manufacturing industries (non-NAICS) was up 1.8 percent from previous month.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released June 16, 2010; next release is July 15, 2010)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization

  • In May 2010, manufacturing industries (NAICS based) operated at 71.9 percent of capacity, 7.1 percentage points below their 1972-2009 average of 79.0 percent and 0.7 percent points higher than their revised capacity utilization level in April 2010.

  • In durable manufacturing, capacity utilization increased 1.2 percentage points in May from April (revised) to 66.3 percent. Increased capacity utilization was registered in motor vehicles and parts (3.1 points), wood products (2.2 points), furniture and related products (1.8 points), primary metal (1.6 points), fabricated metal products (1.5 points), machinery (1.3 points), computer and electronic products (0.9 points), miscellaneous (0.7 points), and nonmetallic mineral products (0.1 points). Decreased capacity utilization was registered in aerospace and miscellaneous transportation equipment (-0.6 points), and electrical equip., appliances, and components (-0.5 points).

  • In non-durable manufacturing, capacity utilization increased 0.1 percentage points in May from April (revised) to 77.8 percent. Increased capacity utilization was registered in printing and support (1.4 points), textile and product mills (1.3 points), plastics and rubber products (1.0 points), food, beverage, and tobacco products (0.7 points), paper (0.5 points), and apparel and leather (0.2 points). Decreased capacity utilization was registered in petroleum and coal products (-1.9 points), and chemical (-0.6 points).

  • The index for other manufacturing industries (non-NAICS) increased 1.1 points from last month.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released June 16, 2010; next release is July 15, 2010)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity

  • Manufacturing sector productivity (revised) rose 1.5 percent in the first quarter of 2010, as output increased 7.2 percent and hours increased 5.6 percent. Productivity grew 3.0 percent in the durable goods industries and 0.9 percent in the nondurable goods industries. Unit labor costs in manufacturing declined 1.5 percent in the first quarter of 2010 and fell 5.1 percent over the last four quarters

  • In durable goods industries, productivity (revised) grew 3.0 percent from previous quarter, annual rate in the first quarter of 2010, as output increased 10.2 percent, while hours worked also increased 7.0 percent.

  • In nondurable goods industries, productivity (revised) grew 0.9 percent from previous quarter, annual rate in the first quarter of 2010, as output increased 4.4 percent, while hours worked also increased 3.4 percent.

    (BLS/DOL Productivity data from “Productivity and Costs, First Quarter 2010 Revised,” USDL 10-0747, released June 3, 2010; next release is August 10, 2010)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Trade

  • Year to date April 2010, U.S. manufactured goods exports accounted for 80.4 percent of all U.S. exports of goods, compared with 82.1 percent a year ago.

  • Manufactured goods exports in March were 7.8 percent lower than the previous month. Imports were down 4.6 percent.

  • The year to date April 2010 trade deficit in manufactured goods of $105.7 billion was $10.1 billion more when compared with $95.6 billion a year ago.

    (Census/BEA/DOC Foreign Trade Statistics data from “U.S. International Trade in Goods and Services, CB10-78, BEA10-25, FT-900(10-04),” released June 10, 2010; next release is July 13, 2010)
    http://www.census.gov/foreign-trade/Press-Release/current_press_release/ft900.pdf

Back to Top


Manufactured Goods Shipments

  • Shipments of manufactured durable goods in May, down following two consecutive monthly increases, decreased $0.8 billion or 0.4 percent to $196.0 billion. This followed a 1.8 percent April increase. Transportation equipment, down following two consecutive monthly increases, had the largest decrease, $1.3 billion or 2.8 percent to $47.1 billion.

  • In May, shipments increased in machinery (3.2 percent), fabricated metal products (1.2 percent), and primary metals (1.0 percent), and electrical equipment, appliances, and components (0.3 percent). Shipment decreased in transportation equipment (-2.8 percent), and computer and electronic products (-2.6 percent).

    (Census Bureau/DOC data from “Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders (M3-1(10)-05, CB10-94),”June 24, 2010; next release is July 28, 2010)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices

  • In May 2010, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.2 percent compared to previous month.

  • The index for finished energy goods was down 1.5 percent from previous month.

  • A seasonally adjusted decrease of price from April to May was registered in home heating oil and distillates (-7.4 percent), gasoline price (-7.0 percent), liquefied petroleum gas (-2.7 percent), residential gas (-1.1 percent), No. 2 diesel fuel (-0.9 percent). A seasonally adjusted increase of price was registered in residential electric power (0.3 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 10-0684,” released May 18, 2010; next release is June 16, 2010)
    http://www.bls.gov/news.release/pdf/ppi.pdf

       

Back to Top


Institute for Supply Management's (ISM) Index  updated

  • Economic activity in the manufacturing sector expanded in June for the 11th consecutive month, and the overall economy grew for the 14th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued to grow in June as the PMI registered 56.2 percent, a decrease of 3.5 percentage points when compared to May's reading of 59.7 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

  • The percentage-point changes in the components of the PMI in June were: Employment down 2.0 points to 57.8, Inventories up 0.2 points to 45.8, Production decreased 5.2 points to 61.4, and Supplier Deliveries down 3.7 points to 57.3. New Orders decreased 7.2 points to 58.5.

    U.S. Industries Reporting Growth in June 2010

    • Plastics & Rubber Products
    • Transportation Equipment
    • Printing & Related Support Activities
    • Computer & Electronic Products
    • Electrical Equipment, Appliances & Components
    • Paper Products
    • Fabricated Metal Products
    • Food, Beverage & Tobacco Products
    • Furniture & Related Products
    • Petroleum & Coal Products
    • Nonmetallic Mineral Products
    • Miscellaneous Manufacturing
    • Chemical Products

    (Institute for Supply Management data released July 1, 2010; next release is August 2, 2010)
    http://www.ism.ws/ISMReport/MfgROB.cfm?navItemNumber=12942

Back to Top



Prepared by
Director of Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
(202) 482-4691