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Manufacturing Biweekly Update
November 10, 2010 [past updates]
| Wage Rates
Manufacturing productivity gains in the third quarter of 2010
During the third quarter of 2010, nonfarm business sector labor productivity—as measured by output per hour—increased at a 1.9-percent annual rate, as output increased 3.0 percent and hours worked increased 1.1 percent. Manufacturing sector productivity rose 0.4 percent in the third quarter of 2010, as output grew 4.0 percent and hours worked increased 3.6 percent. Over the last four quarters, nonfarm business sector productivity increased 2.5 percent, as output rose 4.1 percent and hours worked rose 1.6 percent. Manufacturing productivity increased 3.9 percent over the last four quarters, as output rose 7.0 percent and hours worked increased 3.0 percent.
US manufacturing powers up in October: ISM
(BLS| November 8, 2010)
US manufacturing unexpectedly picked up steam in October, raising hopes for a strong final quarter that could underpin a flagging economic recovery, a key industry survey showed Monday. The Institute of Supply Management (ISM) said its survey of purchasing managers nationwide revealed strong gains in new orders and production, pushing up its index to 56.9 percent, from 54.5 percent in September. Manufacturing activity has expanded for 15 consecutive months but momentum had been slowing since April. Any number above 50 percent indicates expansion. "This month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter," said Norbert Ore, head of the ISM's manufacturing business survey committee.
(AFP |Yahoo News|November 1, 2010)
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U.S. Manufacturing Key Facts
Manufacturing Wage Rates updated
- In October 2010, average hourly earnings in manufacturing were $18.68 (preliminary), up 0.21 percent from September 2010’s $18.64 (preliminary), and up 1.5 percent from October 2009’s $18.41.
(BLS/DOL Employment data from “The Employment Situation, USDL 10-1519,” released November 5, 2010; next release is December 3, 2010)
Manufacturing Wage Rates (Quarterly, Yearly) updated
- During the third quarter of 2010, hourly compensation from previous quarter, annual rate (preliminary) was up 0.1 percent in total manufacturing, down 1.0 percent in durable manufacturing and up 1.6 percent in nondurable manufacturing.
- In the third quarter of 2010, hourly compensation of all manufacturing workers decreased 0.9 percent, compared to a 5.2 percent increase during the third quarter of 2009. Real hourly compensation in the total manufacturing sector decreased 2.1 percent in the third quarter of 2010, compared to 6.9 percent increase in the third quarter of 2009.
(BLS/DOL Productivity data from “Productivity and Costs, Third Quarter 2010, Preliminary,” USDL 10-1518, released November 4, 2010; next release is December 1, 2010)
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- In the second quarter of 2010, manufacturing profits increased 10.7 percent, or $26.7 billion, to $277.1 billion from $250.4 billion in the first quarter. Compared with second quarter profits of 2009, manufacturing profits were up $137.4 billion in the second quarter of 2010.
- Second quarter 2010 profits for all non-financial industries (manufacturing being a subcategory) increased 4.9 percent from the first quarter of 2010 to $1034.0 billion.
(BEA/DOC GDP data from “Gross Domestic Product and Corporate Profits, BEA 10-47,”released September 30, 2010; next release is October 29, 2010)
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Manufacturing Employment updated
- In October, 2010, manufacturing employment went down, with a decrease of 7,000 jobs.
- In October, durable goods manufacturing lost 3,000 jobs with decrease in primary metals (-1,500), wood products (-1,500), and furniture and related products (-1,500), miscellaneous manufacturing (-600), electrical equipment and appliances (-500), and nonmetallic mineral products (-400). Job gains occurred in machinery (1,400), transportation equipment (1,100), fabricated metal products (900), and computer and electronic products (400).
- In October, nondurable goods manufacturing lost 400 jobs, with decreases in food manufacturing (-2,700), chemicals (-2,000),plastics and rubber products (-1,900), textile product mills (-1,700), printing and related support activities (-1,300), and paper and paper products (-200).Job gains occurred in apparel (2,100), beverages and tobacco products (1,900), petroleum and coal products (1,900), leather and allied products (400), and textile mills (200).
- 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-10-1519,” released November 5, 2010; next release is December 3, 2010)
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- In September 2010, manufacturing production was down 0.2 percent from previous month and was 5.4 percent above its year-earlier level.
- Production of durable goods was down 0.2 percent from previous month. The durable industry that registered decreases in output included electrical equip., appliances and components (-0.7 percent), machinery (-0.7 percent), furniture and related products (-0.5 percent), computer and electronic products (-0.4 percent), aerospace and miscellaneous transportation equipment (-0.4 percent), fabricated metal products (-0.4 percent), primary metal (-0.1 percent), and wood products (-0.1 percent). The durable manufacturing industries that registered increases in output included motor vehicles and parts (0.5 percent), and miscellaneous (0.5 percent). There was no change in output for nonmetallic mineral products.
- The production of nondurable goods was up 0.1 percent from previous month. The nondurable manufacturing industries that registered increases in output included food, beverage, and tobacco products (0.7 percent), apparel and leather (0.5 percent), chemical (0.1 percent), and paper (0.1 percent). The nondurable industry that registered decreases in output included printing and support (-1.3 percent), plastics and rubber products (-0.9 percent), petroleum and coal products (-0.3 percent), and textile and product mills (-0.2 percent).
- The index for other manufacturing industries (non-NAICS) was down 1.7 percent from the previous month.
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released October 18, 2010; next release is November 16, 2010)
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Manufacturing Capacity Utilization
- In September 2010, manufacturing industries (NAICS based) operated at 72.4 percent of capacity, 6.6 percentage points below their 1972-2009 average of 79.0 percent and 0.1 percent points lower than their revised capacity utilization level in August 2010.
- In durable manufacturing, capacity utilization operated at 69.9 percent capacity, down 0.2 points from previous month (revised). Increased capacity utilization was registered in motor vehicles and parts (0.4 points), wood products (0.2 points), miscellaneous (0.1 points), and nonmetallic mineral products (0.1 points). Decreased capacity utilization was demonstrated in computer and electronic products (-0.8 points), electrical equip., appliances, and components (-0.5 points), machinery (-0.5 points), primary metal (-0.3 points), aerospace and miscellaneous transportation equipment (-0.3 points), fabricated metal products (-0.2 points), and furniture and related products (-0.1 points).
- In non-durable manufacturing, capacity utilization increased 0.1 percentage points in from previous month (revised) to 75.5 percent. Increased capacity utilization was registered in apparel and leather (0.9 points), food, beverage, and tobacco products (0.5 points), paper (0.2 points), chemical (0.1 points), and textile and product mills (0.1 points). Decreased capacity utilization was only registered in printing and support (-0.7 points), plastics and rubber products (-0.6 points), and petroleum and coal products (-0.1 points).
- The index for other manufacturing industries (non-NAICS) decreased 1.3 points from previous month.
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released October 15, 2010; next release is November 16, 2010)
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Manufacturing Productivity updated
- Manufacturing sector productivity (premilinary) rose 0.4 percent in the third quarter of 2010, as output increased 4.0 percent and hours increased 3.6 percent. Productivity was down 0.8 percent in the durable goods industries and up 2.9 percent in the nondurable goods industries. Unit labor costs in manufacturing declined 0.3 percent in the third quarter of 2010 and fell 4.6 percent over the last four quarters.
- In durable goods industries, productivity (preliminary) was down 0.8 percent from previous quarter, as output increased 5.6 percent, while hours worked also increased 6.4 percent.
- In nondurable goods industries, productivity (preliminary) was up 2.9 percent from previous quarter, as output increased 2.2 percent, while hours worked also decreased 0.7 percent.
(BLS/DOL Productivity data from “Productivity and Costs, Third Quarter 2010 Preliminary,” USDL 10-1518, released November 4, 2010; next release is December 1, 2010)
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Manufacturing Trade updated
- Year to date September 2010, U.S. manufactured goods exports accounted for 80.9 percent of all U.S. exports of goods, compared with 81.8 percent a year ago.
- Manufactured goods exports in September were 0.9 percent higher than the previous month. Imports were down 1.0 percent.
- The year to date September 2010 trade deficit in manufactured goods of $297.8 billion was $67.6 billion more when compared with $230.1 billion a year ago.
(Census/BEA/DOC Foreign Trade Statistics data from “U.S. International Trade in Goods and Services, CB10-173, BEA10-52, FT-900(10-09),” released November 10, 2010; next release is December 10, 2010)
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Manufactured Goods Shipments
- Shipments of manufactured durable goods in September, down two consecutive months, decreased $0.9 billion or 0.4 percent to $197.4 billion. This followed a 1.4 percent August decrease.
- In September, shipments increased in machinery (1.5 percent), and primary metals (1.0 percent). Shipment decreased in computer and electronic products (-2.3 percent), electrical equipment, appliances, components (-1.3 percent), transportation equipment (-0.5 percent), and fabricated metal products (-0.2 percent).
(Census Bureau/DOC data from “Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders (M3-1(10)-09, CB10-163),” October 27, 2010; next release is November 24, 2010)
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Manufactured Goods Prices
- In September 2010, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.1 percent compared to previous month.
- The index for finished energy goods was up 0.5 percent from previous month.
- A seasonally adjusted increase of price from August to September was registered in liquefied petroleum gas (6.1 percent), and residential electric power (0.4 percent). However, a seasonally adjusted decrease of price was registered in residential gas (-4.0 percent), No. 2 diesel fuel (-3.1 percent), home heating oil and distillates (-2.6 percent), and gasoline price (-1.8 percent).
(BLS/DOL data from “Producer Price Indexes, USDL 10-1425,” released October 14, 2010; next release is November 16, 2010)
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Institute for Supply Management's (ISM) Index updated
- Economic activity in the manufacturing sector expanded in October for the 15th consecutive month, and the overall economy grew for the 18th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
- Manufacturing continued to grow in October, and at an accelerated rate as the PMI registered 56.9 percent, an increase of 2.5 percentage points when compared to September's reading of 54.4 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 October were: New Orders increased 7.8 points to 58.9, Production increased 6.2 points to 62.7, Employment up 1.2 points to 57.7, Inventories down 1.7 points to 53.9, and Supplier Deliveries down 1.1 points to 51.2.
U.S. Industries Reporting Growth in October 2010
- Apparel, Leather & Allied Products
- Primary Metals
- Petroleum & Coal Products
- Electrical Equipment, Appliances & Components
- Miscellaneous Manufacturing
- Fabricated Metal Products
- Paper Products
- Printing & Related Support Activities
- Transportation Equipment
- Computer & Electronic Products
- Food, Beverage & Tobacco Products
- Plastics & Rubber Products
- Chemical Products
(Institute for Supply Management, data released November 1, 2010; next release is December 1, 2010)
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Director of Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce