Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

June 8, 2012 [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 down up
Goods Shipments up up


Biweekly Notes

Manufacturing in U.S. Expanded at a Slower Pace in May

Manufacturing in the U.S. grew at a slower pace in May as factories tempered production and pared inventories in response to weakness in the global economy. The Institute for Supply Management’s factory index fell to 53.5 after reaching a 10-month high of 54.8 in April, the Tempe, Arizona-based group reported today. Readings greater than 50 signal growth. The median projection of economists surveyed by Bloomberg News called for a decrease to 53.8 in May. Manufacturing, which has been a bright spot since the economic expansion began three years ago, may be starting to cool. While gains in auto sales are underpinning factory growth, the industry may become strained by stagnation in Europe’s economy, U.S. fiscal concerns and less corporate investment.
(Bloomberg| June 1, 2012)
[Read More]

US Construction Spending, Manufacturing on the Rise

U.S. construction spending rose 0.3 percent in April as private residential construction increased at the fastest pace in six months. Construction spending rose to an annual rate of $820.7 billion, the Commerce Department said on Friday, after an upwardly revised 0.3 percent increase in March. Economists polled by Reuters had expected construction spending to rise 0.4 percent after a previously reported 0.1 percent increase the prior month. Overall construction spending was up 6.8 percent compared with April 2011. Private construction spending increased 1.2 percent in April after rising 0.8 percent in March, while spending on private residential projects rose 2.8 percent, the biggest increase since October, after a 0.4 percent rise the prior month. Spending on single-family private structures was up 1.8 percent, while outlays for multi-family units jumped 4.1 percent. Private nonresidential construction slipped 0.2 percent in April, after rising 1.2 percent in March.
(Reuters |CNBC | June 1, 2012)
[Read More]

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates UPDATED

  • In May 2012, average hourly earnings in manufacturing were $19.09 (preliminary), down 0.16 percent from previous month, and up 0.90 percent from May 2011’s $18.92.

    (BLS/DOL Employment data from “The Employment Situation, USDL 12-1070,” released June 1, 2012; next release is July 6, 2012)
    http://www.bls.gov/news.release/pdf/empsit.pdf

       

Manufacturing Wage Rates (Quarterly, Yearly) UPDATED

  • In the first-quarter of 2012, hourly compensation from previous quarter, annual rate (revised) was unchanged in total manufacturing, down (-0.6 percent) in durable manufacturing and up (+1.0 percent) in nondurable manufacturing.

  • In the first-quarter of 2012, hourly compensation (revised) of all manufacturing workers decreased (-0.7 percent), compared to a (+2.8 percent) increase during the first-quarter of 2011. Real hourly compensation in the total manufacturing sector decreased (-3.4 percent) in the first-quarter of 2012, compared to (+0.6 percent) increase in the first-quarter of 2011.

    (BLS/DOL Productivity data from “Productivity and Costs, First Quarter 2012,” USDL 12-1123, released June 6, 2012; next release is August 8, 2012)
    http://www.bls.gov/news.release/pdf/prod2.pdf

Back to Top


Manufacturing Profits

  • In the fourth quarter of 2011, manufacturing profits increased 4.10 percent, or $11.0 billion, to $279.2 billion from $268.2 billion in the third quarter. Compared with fourth quarter profits of 2010, manufacturing profits were up $91.5 billion in the fourth quarter of 2011

  • Fourth quarter 2011 profits for all non-financial industries (manufacturing being a subcategory) increased $30.1 billion from the third quarter of 2011 to $998.0 billion.

    (BEA/DOC GDP data from “Gross Domestic Product, BEA 12-11,” released March 29, 2012; next release is Jun 28, 2012)
    http://www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp3q11_3rd.pdf

       

Back to Top


Manufacturing Employment UPDATED

  • In May 2012, manufacturing employment went up, with an increase of 12,000 jobs.

  • In May, durable goods manufacturing gained 13,000 jobs with increases in fabricated metal products (+5,700), transportation equipment (+4,100), primary metals (+3,800), machinery (+2,500), computer and electronic products (+1,700), electrical equipment and appliances (+1,200), and miscellaneous manufacturing (+800). However, job loss occurred in nonmetallic mineral products (-3,000), furniture and related products (-2,100), and wood products (-1,400).

  • In May, nondurable goods manufacturing lost 1,000 jobs with decreases in chemicals (-1,200), paper and paper products (-800), plastics and rubber products (-800), textile mills (-700), apparel (-500), petroleum and coal products (-500), printing and related support activities (-400), leather and allied products (-400), and textile product mills (-100). However, job gains occurred in beverages and tobacco products (+2,700), and food manufacturing (+1,200).

  • The manufacturing employment of 12.0 million workers represents 9.0 percent of total non-farm employment.

    (BLS/DOL Employment data from “The Employment Situation, USDL 12-0816,” released May 4, 2012; next release is June 1, 2012) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production

  • In April 2012, manufacturing production was up (+0.6 percent) from previous month and was up (+5.8 percent) above its year-earlier level.

  • Production of durable goods was up (+1.3 percent) from the previous month. The durable industries that registered increases in output included motor vehicles and parts (+3.9 percent), furniture and related products (+2.4 percent), computer and electronic products (+1.6 percent), miscellaneous (+1.5 percent), aerospace and miscellaneous transportation equipment (+1.1 percent), fabricated metal products (+0.8 percent), electrical equip., appliances, and components (+0.7 percent), nonmetallic mineral products (+0.4 percent), machinery (+0.1 percent), and primary metals (+0.1 percent). The durable industries that registered decreases in output included wood products (-1.4 percent).

  • In April 2012, production of nondurable goods was down (-0.2 percent) from the previous month. The nondurable manufacturing industries that registered increases in output included paper (+0.7 percent), apparel and leather (+0.6 percent), printing and support (+0.6 percent), textile and product mills (+0.5 percent), and chemicals (+0.3 percent). The nondurable industries that registered decreases in output included petroleum and coal products (-2.6 percent), plastics and rubber products (-0.4 percent), and food, beverage and tobacco products (-0.2 percent).

  • Other manufacturing (non-NAICS) was down (-0.1 percent).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released May 16, 2012; next release is June 15, 2012)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization

  • In April 2012, manufacturing industries (NAICS based) operated at 78.4 percent of capacity, (+0.4 percent) above the capacity utilization level from previous month, and down (-0.3 percentage) points below their 1972-2011 average of 78.7 percent.

  • In April 2012, durable manufacturing, capacity utilization operated at 78.3 percent capacity, up (+0.9 points) from previous month. Increased capacity utilization was registered in motor vehicles and parts (+2.8 points), furniture and related products (+1.8 points), and miscellaneous (+0.9 points), aerospace and miscellaneous transportation equipment (+0.7 points), computer and electronic products (+0.7 points), electrical equip., appliances, and components (+0.6 points), fabricated metal products (+0.6 points), nonmetallic mineral products (+0.5 points), and primary metals (+0.2 points). Decreased capacity utilization was registered in wood products (-0.8 points), and machinery (-0.2 points).

  • In April 2012, non-durable manufacturing, capacity utilization operated 78.6 percent capacity, down 0.1 points from the previous month. Increased capacity utilization was registered in printing and support (+0.6 points), apparel and leather (+0.6 points), paper (+0.6 points), textile and product mills (+0.4 points), and chemicals (+0.2 points). Decreased capacity utilization was registered in petroleum and coal products (-2.1 points), plastics and rubber products (-0.4 points), and food, beverage, and tobacco products (-0.2 points).

  • The index for other manufacturing industries (non-NAICS) was up (+0.1 points).

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released May 16, 2012; next release is June 15, 2012)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity UPDATED

  • Manufacturing sector productivity was up (+5.2 percent) in the first-quarter of 2012, as output increased (+10.0 percent) and hours increased (+4.6 percent). Productivity was up (+9.9 percent) in the durable goods industries and up (+0.1 percent) in the nondurable goods industries. Unit labor costs in manufacturing decreased (-4.9 percent) in the first-quarter of 2012, and decreased (-2.9 percent) over the last four quarters.

  • In durable goods industries, productivity was up (+9.9 percent) from previous quarter, as output increased (15.4 percent), while hours worked increased (4.9 percent).

  • In nondurable goods industries, productivity was up (+0.1 percent) from previous quarter, as output increased (+4.3 percent), and hours worked increased (+4.1 percent).

    (BLS/DOL Productivity data from “Productivity and Costs, First-Quarter 2012,” USDL 12-1123, released June 6, 2012; next release is August 8, 2012)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Trade UPDATED

  • Manufactured goods exports in April 2012 were 8.58 percent lower than the previous month. Imports were 4.90 percent lower.

  • Year-to-date April 2012, U.S. manufactured goods exports accounted for 86.7 percent of all U.S. exports of goods, compared with 85.0 percent a year ago.

  • The year-to-date April 2012 trade deficit in manufactured goods of $135.7 billion was $4.8 billion more when compared with $130.9 billion a year ago.

    (USA Trade Online, U.S. Census Bureau, released June 8, 2012; Next release is July 11, 2012)
    http://www.usatradeonline.gov/

Back to Top


Manufactured Goods Shipments UPDATED

  • Shipments of manufactured durable goods in April, up four of the last five months, increased $1.4 billion or 0.6 percent to $222.5 billion, revised from the previously published 0.7 percent increase. This followed a 0.9 percent March increase.

  • In April, shipments increased in transportation equipment (+3.1 percent), nonmetallic mineral products (+1.0 percent), computers and electronic products (+0.8 percent), wood products (+0.8 percent), primary metals (+0.4 percent), and fabricated metal products (+0.1 percent). However, shipments decreased in machinery (-2.6 percent), electrical equipment, appliances, and components (-0.7 percent), and miscellaneous durable goods (-0.7 percent). There was no change of shipment in furniture and related products.

    (Census Bureau/DOC data from “Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(12)-4, CB12-98),” June 4, 2012; next release is July 3, 2012)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices

  • In April 2012, 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 (-1.4 percent) from previous month.

  • A seasonally adjusted decrease in price from March to April was registered in liquefied petroleum gas (-7.2 percent), no. 2 diesel fuel (-4.2 percent), home heating oil and distillates (-3.4 percent), residential gas (-3.1 percent), and gasoline (-1.7 percent). An increase in price was registered residential electric power (+0.3 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 12-0895,” released May 11, 2012; next release is June 13, 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 May for the 34th consecutive month, and the overall economy grew for the 36th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued its growth in May as the PMI registered 53.5 percent, a decrease of 1.3 percentage points when compared to April's reading of 54.8 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 May were Production, -5.4 points decrease to 55.6; Inventories, -2.5 points decrease to 46.0; Supplier Deliveries, -0.5 points decrease to 48.7; Employment, -0.4 points decrease to 56.9; New Orders +1.9 points increase to 60.1.

    U.S. Industries Reporting Growth in May 2012

    • Nonmetallic Mineral Products
    • Furniture & Related Products
    • Apparel, Leather & Allied Products
    • Miscellaneous Manufacturing
    • Primary Metals
    • Electrical Equipment, Appliances & Components
    • Fabricated Metal Products
    • Machinery
    • Textile Mills
    • Paper Products
    • Computer & Electronic Products
    • Printing & Related Support Activities
    • Chemical Products

    (Institute for Supply Management, data released June 1, 2012; next release is July 2, 2012)
    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