Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

January 6, 2012 [past updates]


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


Biweekly Notes

Manufacturing Is Surprising Bright Spot in U.S. Economy

For the first time in many years, manufacturing stands out as an area of strength in the American economy. When the Labor Department reports December employment numbers on Friday, it is expected that manufacturing companies will have added jobs in two consecutive years. Until last year, there had not been a single year when manufacturing employment rose since 1997. And this week the Institute for Supply Management, which has been surveying American manufacturers since 1948, reported that its employment index for December was 55.1, the highest reading since June. Any number above 50 indicates that more companies say they are hiring than say they are reducing employment. There were new signs Thursday that the overall jobs climate was improving, as the Labor Department reported that new claims for unemployment benefits fell last week and a payroll company’s report showed strong growth in private-sector jobs in December.
(New York Times |January 5, 2012)
Read More

Manufacturing Expands by Most in Six Months

U.S. factories expanded in December at the fastest pace in six months, adding to evidence manufacturing is improving from India to the U.K. entering 2012. The Institute for Supply Management’s factory index climbed to 53.9 last month from 52.7 in November, the Tempe, Arizona- based group’s data showed today. Fifty is the dividing line between growth and contraction, and economists surveyed by Bloomberg News forecast the gauge would rise to 53.5. The manufacturing employment index (NAPMEMPL) rose to the highest since June. Factory payrolls rose by 5,000 last month after a 2,000 gain in November, according to a survey of economists surveyed by Bloomberg before the Labor Department’s payroll report on Jan. 6.
(Bloomberg| January 3, 2012)
Read More

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates UPDATED

  • In December 2011, average hourly earnings in manufacturing were $19.05 (preliminary), up 0.4 percent from previous month, and up 1.3 percent from December 2010’s $18.80.

    (BLS/DOL Employment data from “The Employment Situation, USDL 12-0012,” released January 6, 2012; next release is February 3, 2012)
    http://www.bls.gov/news.release/pdf/empsit.pdf

       

Manufacturing Wage Rates (Quarterly, Yearly)

  • 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 UPDATED

  • In the third quarter of 2011, manufacturing profits increased 7.32 percent, or $18.3 billion, to $268.2 billion from $249.9 billion in the first quarter. Compared with third quarter profits of 2010, manufacturing profits were up $41.0 billion in the third quarter of 2011.

  • Third quarter 2011 profits for all non-financial industries (manufacturing being a subcategory) increased $22 billion from the second quarter of 2011 to $967.9 billion.

    (BEA/DOC GDP data from “Gross Domestic Product, BEA 11-63,” released December 22, 2011; next release is March 29, 2011)
    http://www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp3q11_3rd.pdf

       

Back to Top


Manufacturing Employment UPDATED

  • In December 2011, manufacturing employment went up, with an increase of 23,000 jobs.

  • In December, durable goods manufacturing gained 23,000 jobs with increases in transportation equipment (8,600), fabricated metal products (6,000), machinery (5,300), miscellaneous manufacturing (1,700), electrical equipment and appliances (1,400), wood products (900), nonmetallic mineral products (300), and computer and electronic products (200). However, job loss occurred in furniture and related products (-1,400), and primary metals (-100).

  • In December, there was no change of employment in nondurable goods manufacturing sector. However, job loss occurred in petroleum and coal products (-2,300),plastics and rubber products (-1,400), textile product mills (-900), beverages and tobacco products (-800), apparel (-500). Job gains occurred in paper and paper products (1,700), textile mills (1,500), printing and related support activities (1,400), chemicals (1,000), food manufacturing (300), and leather and allied products (100).

  • 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-11-0012,” released January 6, 2011; next release is February 3, 2011) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production UPDATED

  • In November 2011, manufacturing production was down 0.4 percent from previous month and was 3.8 percent above its year-earlier level.

  • Production of durable goods was down 0.1 percent from previous month. The durable industries that registered decreases in output included motor vehicles and parts (-3.4 percent), electrical equip., appliances, and components (-1.8 percent), wood products (-1.7 percent), miscellaneous (-.9), and computer and electronic products (-0.2 percent). The durable industries that registered increases in output included aerospace and miscellaneous transportation equipment (2.1 percent), primary metal (1.8 percent), fabricated metal products (0.6 percent), nonmetallic mineral products (0.5 percent), machinery (0.3 percent), and furniture and related products (0.3 percent).

  • Production of nondurable goods was down 0.4 percent from the previous month. The nondurable manufacturing industries that registered decreases in output included printing and support (-1.3 percent), apparel and leather (-1.1 percent), chemicals (-0.9 percent), textile and product mills (-0.6 percent), food, beverage, and tobacco products (-0.4 percent), and plastics and rubber products (-0.3 percent).The nondurable industries that registered increases in output included paper (1.1 percent), and petroleum and coal products (0.2 percent).

  • Other manufacturing industries (non-NAICS) was down (-2.2 percent).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released December 15, 2011; next release is January 18, 2012)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization UPDATED

  • In November 2011, manufacturing industries (NAICS based) operated at 75.8 percent of capacity, 3.0 percentage points below their 1972-2010 average of 78.8 percent, and 0.3 percentage points below their revised capacity utilization level in October 2011.

  • In November 2011, durable manufacturing, capacity utilization operated at 74.4 percent capacity, down 0.2 points from previous month. Decreased capacity utilization was registered in motor vehicles and parts (-2.5 points), electrical equip., appliances, and components (-1.2 points), wood products (-0.9 points), miscellaneous (-0.9 points), and computer and electronic products (-0.8 points). Increased capacity utilization was registered in aerospace and miscellaneous transportation equipment (1.7 points), primary metals (1.4 points), fabricated metal products (0.6 points), nonmetallic mineral products (0.4 points), furniture and related products (0.3 points), and machinery (0.2 points).

  • In November 2011, non-durable manufacturing, capacity utilization operated 77.4 percent capacity, down 0.4 from previous month. Decreased capacity utilization was registered in printing and support (-0.8 points), apparel and leather (-0.7 points), chemicals (-0.7 points), food, beverage, and tobacco products (-0.5 points), and textile and product mills (-0.3 points). Increased capacity utilization was registered in paper (1.0 points), and petroleum and coal products (0.1 points). Meanwhile, capacity utilization was unchanged for plastics and rubber products.

  • The index for other manufacturing industries (non-NAICS) decreased (-1.4 points).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released December 15, 2011; next release is January 18, 2011)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity

  • 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

  • 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 November, down two of the last three months, decreased $0.7 billion or 0.3 percent to $202.9 billion, revised from the previously published 0.4 percent decrease. This followed a 1.5 percent October increase.

  • In November, shipments decreased in transportation equipment (-2.5 percent), computers and electronic products (-2.2 percent), electrical equipment, appliances, and components (-1.2 percent), furniture and related products (-0.6 percent), and wood products (-0.5 percent). However, shipments increased in primary metals (3.9 percent), fabricated metal products (0.7 percent), machinery (0.6 percent), and nonmetallic mineral products (0.3 percent). There was no change in shipment for miscellaneous durable goods.

    (Census Bureau/DOC data from “Full Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(11)-11, CB12-01),” January 4, 2012; next release is February 3, 2012)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices UPDATED

  • In November 2011, 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 0.1 percent from previous month.

  • A seasonally adjusted increase of price from October to November was registered in home heating oil and distillates (+9.4 percent), no. 2 diesel fuel (+7.5 percent), and liquefied petroleum gas (+0.2 percent). A decrease in price was registered in residential gas (-2.0 percent), residential electric power (-0.5 percent), and gasoline price (-0.1 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 11-1747,” released December 15, 2011; next release is January 18, 2012)
    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 December for the 29th consecutive month, and the overall economy grew for the 31st consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued its growth in December as the PMI registered 53.9 percent, an increase of 1.2 percentage points when compared to November's reading of 52.7 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 December were Employment, +3.3 points decrease to 55.1; Production, +3.3 points increase to 59.9; New Orders +0.9 points increase to 57.6; Supplier Deliveries, no change at 49.9; Inventories, -1.2 points decrease to 47.1;

    U.S. Industries Reporting Growth in December 2011

    • Apparel, Leather & Allied Products
    • Printing & Related Support Activities
    • Textile Mills
    • Petroleum & Coal Products
    • Machinery
    • Food, Beverage & Tobacco Products
    • Computer & Electronic Products
    • Primary Metals
    • 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