Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

December 9, 2011 [past updates]


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


Biweekly Notes

Trade Gap in U.S. Shrank in October to Lowest This Year

The trade deficit narrowed in October to the lowest level of the year, reflecting a drop in imports that will help give the U.S. economy a lift. The gap shrank 1.6 percent to $43.5 billion, smaller than projected, from $44.2 billion in September, Commerce Department figures showed today in Washington. Purchases from overseas fell to the lowest level since April, due almost entirely to a plunge in demand for petroleum. Imports of capital goods, like computers and aircraft, and consumer goods climbed, showing spending by American companies and households is keeping the economy growing. Exports to China and South and Central America reached records, indicating demand from developing nations that is benefiting companies like Dow Chemical Co. may cushion the U.S. from any slowdown in Europe. Another report today showed confidence among consumers rose in December to a six-month high, more than forecast.
Read More
(Bloomberg |December 9, 2011)

U.S. Manufacturers Seen Leading Growth in 2012, ISM Says

U.S. manufacturers are more optimistic about sales, spending and hiring for next year than service companies, a sign factories will remain at the forefront of the economic expansion, according to the Institute for Supply Management. Purchasing managers at factories anticipate sales will grow 5.5 percent next year and capital investment will increase 1.9 percent, the Tempe, Arizona-based group’s semiannual forecast showed today. Revenue and spending will increase at a slower pace among service providers, which account for about 90 percent of the economy.“Manufacturing has demonstrated its resilience throughout this challenging economic recovery period, with consistent growth dating back to August of 2009,” Bradley Holcomb, chairman of the group’s factory survey, said in a statement. Manufacturers “expect to see continued growth in 2012.”
Read More
(Bloomberg| December 6, 2011)

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates UPDATED

  • In November 2011, average hourly earnings in manufacturing were $18.99 (preliminary), down 0.1 percent from previous month, and up 1.3 percent from November 2010’s $18.75.

    (BLS/DOL Employment data from “The Employment Situation, USDL 11-1691,” released December 2, 2011; next release is January 6, 2011)
    http://www.bls.gov/news.release/pdf/empsit.pdf

       

Manufacturing Wage Rates (Quarterly, Yearly) UPDATED

  • In the third-quarter of 2011, hourly compensation from previous quarter, annual rate (revised) was down -0.4 percent in total manufacturing, up 0.2 percent in durable manufacturing and down -1.3 percent in nondurable manufacturing.

  • In the third-quarter of 2011, hourly compensation of all manufacturing workers increased 0.9 percent, compared to a 1.4 percent increase during the third-quarter of 2010. Real hourly compensation in the total manufacturing sector decreased -2.7 percent in the third-quarter of 2011, compared to 0.2 percent increase in the third-quarter of 2010.

    (BLS/DOL Productivity data from “Productivity and Costs, Third Quarter 2011, Revised” USDL 11-1690, released November 30, 2011; next release is February 2, 2011)
    http://www.bls.gov/news.release/pdf/prod2.pdf

Back to Top


Manufacturing Profits

  • In the second quarter of 2011, manufacturing profits increased 14.8 percent, or $32.3 billion, to $249.9 billion from $217.6 billion in the first quarter. Compared with second quarter profits of 2010, manufacturing profits were up $12.6 billion in the second quarter of 2011. (to be updated on next release)

  • Third quarter 2011 profits for all non-financial industries (manufacturing being a subcategory) increased $21.1 billion from the second quarter of 2011 to $967.0 billion.

    (BEA/DOC GDP data from “Gross Domestic Product, BEA 11-55,” released November 22, 2011; next release is December 22, 2011)
    http://www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp3q11_2nd.pdf

       

Back to Top


Manufacturing Employment UPDATED

  • In November 2011, manufacturing employment went up, with an increase of 2,000 jobs.

  • In November, durable goods manufacturing gained 10,000 jobs with increases in fabricated metal products (8,300), transportation equipment (5,200), machinery (3,800), primary metals (1,000), and wood products (700). However, job loss occurred in computer and electronic products (-3,400), miscellaneous manufacturing (-3,000), electrical equipment and appliances (-800), furniture and related products (-800), and nonmetallic mineral products (-300).

  • In November, employment in nondurable goods manufacturing sector lost 8000 jobs with decreases in food manufacturing (-3,300), printing and related support activities (-3,200), apparel (-1,700), chemicals (-1,400), plastics and rubber products (-900), textile mills (-700), and petroleum and coal products (-300). Job gains occurred in beverages and tobacco products (1,800), textile product mills (700), and leather and allied products (500). Meanwhile, there was no change of employment in paper and paper products.

  • The manufacturing employment of 11.8 million workers represents 8.9 percent of total non-farm employment.

    (BLS/DOL Employment data from “The Employment Situation, USDL-11-1691,” released December 2, 2011; next release is January 6, 2011) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production

  • In October 2011, manufacturing production was up 0.5 percent from previous month and was 4.1 percent above its year-earlier level.

  • Production of durable goods was up 0.8 percent from previous month. The durable industries that registered increases in output included motor vehicles and parts (3.1 percent), aerospace and miscellaneous transportation equipment (2.1 percent), electrical equip., appliances, and components (2.0 percent), computer and electronic products (0.8 percent), fabricated metal products (0.5 percent), and primary metal (0.2 percent). The durable industries that registered decreases in output included wood products (-2.2 percent), nonmetallic mineral products (-2.0 percent), machinery (-0.5 percent), and furniture and related products (-0.4 percent).

  • Production of nondurable goods was up 0.2 percent from the previous month. The nondurable manufacturing industries that registered increases in output included apparel and leather (2.8 percent), food, beverage, and tobacco products (0.9 percent), plastics and rubber products (0.7 percent), and chemicals (0.1 percent). The nondurable industries that registered decreases in output included petroleum and coal products (-0.9 percent), printing and support (-0.7 percent), textile and product mills (-0.3 percent), and paper (-0.3 percent).

  • Other manufacturing industries (non-NAICS) was down (-0.2 percent).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released November 16, 2011; next release is December 15, 2011)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization

  • In October 2011, manufacturing industries (NAICS based) operated at 75.9 percent of capacity, 2.9 percentage points below their 1972-2010 average of 78.8 percent, and 0.3 percentage points above their revised capacity utilization level in September 2011.

  • In October 2011, durable manufacturing, capacity utilization operated at 74.6 percent capacity, up 0.4 points from previous month. Increased capacity utilization was registered in electrical equip., motor vehicles and parts (1.8 points), appliances, and components (1.7 points), aerospace and miscellaneous transportation equipment (1.5 points), fabricated metal products (0.5 points), and primary metals (0.2 points), Decreased capacity utilization was registered in wood products (-1.3 points), nonmetallic mineral products (-1.0 points), machinery (-0.5 points), furniture and related products (-0.2 points), and miscellaneous (-0.1 points). Meanwhile, capacity utilization was unchanged for computer and electronic products.

  • In October 2011, non-durable manufacturing, capacity utilization operated 77.5 percent capacity, up 0.2 from previous month. Increased capacity utilization was registered in apparel and leather (1.9 points), plastics and rubber products (0.7 points), food, beverage, and tobacco products (0.5 points), and chemicals (0.1 points). Decreased capacity utilization was registered in petroleum and coal products (-0.9 points), printing and support (-0.5 points), paper (-0.2 points), and textile and product mills (-0.2 points).

  • The index for other manufacturing industries (non-NAICS) decreased (-0.1 points).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released November 16, 2011; next release is December 15, 2011)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity UPDATED

  • Manufacturing sector productivity was up 5.0 percent in the third-quarter of 2011, as output increased 4.6 percent and hours decreased -0.4 percent. Productivity was up 9.5 percent in the durable goods industries and up 0.1 percent in the nondurable goods industries. Unit labor costs in manufacturing decreased -5.1 percent in the third-quarter of 2011, and decreased -1.9 percent over the last four quarters.

  • In durable goods industries, productivity was up 9.5 percent from previous quarter, as output increased 8.3 percent, while hours worked decreased -1.1 percent.

  • In nondurable goods industries, productivity was up 0.1 percent from previous quarter, as output increased 1.0 percent, and hours worked increased 0.9 percent.

    (BLS/DOL Productivity data from “Productivity and Costs, Third-Quarter 2011, Revised,” USDL 11-1690, released November 30, 2011; next release is February 2, 2011)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Trade UPDATED

  • Manufactured goods exports in October were 1.72 percent higher than the previous month. Imports were 3.07 percent higher.

  • Year to date October 2011, U.S. manufactured goods exports accounted for 85.6 percent of all U.S. exports of goods, compared with 86.5 percent a year ago.

  • The year to date October 2011 trade deficit in manufactured goods of $374.1 billion was $35.7 billion more when compared with $338.4 billion a year ago.

    (USA Trade Online, U.S. Census Bureau November 10 data release. Next release is January 13, 2011)
    http://www.usatradeonline.gov/

Back to Top


Manufactured Goods Shipments UPDATED

  • Shipments of manufactured durable goods in October, up five of the last six months, increased $3.2 billion or 1.6 percent to $203.9 billion, revised from the previously published 1.3 percent increase. This followed a 0.4 percent September decrease.

  • In October, shipments increased in transportation equipment (5.0 percent), primary metals (3.2 percent), computers and electronic products (1.8 percent), wood products (1.6 percent), nonmetallic mineral products (1.0 percent), and miscellaneous durable goods (0.8 percent). , However, shipments decreased in furniture and related products (-1.4 percent), machinery (-1.3 percent), electrical equipment, appliances, and components (-0.9 percent), and fabricated metal products (-0.4 percent).

    (Census Bureau/DOC data from “Full Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(11)-10, CB11-205),” December 5, 2011; next release is January 4, 2011)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices

  • In October 2011, the Producer Price Index (PPI) for finished goods, except foods and energy, remained at its previous monthly level.

  • The index for finished energy goods was down 1.4 percent from previous month.

  • A seasonally adjusted increase of price from September to October was registered in residential electric power (1.1 percent). A decrease in price from September to October was registered in home heating oil and distillates (-6.0 percent), no. 2 diesel fuel (-5.5 percent), residential gas (-3.3 percent), gasoline price (-2.4 percent), and liquefied petroleum gas (-2.2 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 11-1643,” released November 15, 2011; next release is December 15, 2011)
    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 November for the 28th consecutive month, and the overall economy grew for the 30th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued its growth in November as the PMI registered 52.7 percent, an increase of 1.9 percentage points when compared to October's reading of 50.8 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 November were Production, +6.5 points increase to 56.6; New Orders +4.3 points increase to 56.7; Inventories, +1.6 points increase to 48.3; Supplier Deliveries, -1.4 points decrease to 49.9; and Employment, -1.7 points decrease to 51.8.

    U.S. Industries Reporting Growth in November 2011

    • Wood Products
    • Textile Mills
    • Petroleum & Coal Products
    • Primary Metals
    • Food, Beverage & Tobacco Products
    • Computer & Electronic Products
    • Apparel, Leather & Allied Products
    • Paper Products

    (Institute for Supply Management, data released December 1, 2011; next release is January 3, 2011)
    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