Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

August 20, 2010 [past updates]


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


Biweekly Notes

Industrial production and capacity utilization

Industrial production rose 1.0 percent in July after having edged down 0.1 percent in June, and manufacturing output moved up 1.1 percent in July after having fallen 0.5 percent in June. A large contributor to the jump in manufacturing output in July was an increase of nearly 10 percent in the production of motor vehicles and parts; even so, manufacturing production excluding motor vehicles and parts advanced 0.6 percent.

(Federal Reserve, August 17, 2010) www.federalreserve.gov/releases/g17/Current/g17.pdf

Autos Bolster Jobs In a Gloomy Summer
After a dismal summer last year, the auto industry last month was a rare bright spot in an otherwise grim jobs picture. Auto makers normally close factories in the summer to perform maintenance. But this summer, some decided to keep plants running to rebuild depleted inventories after major shutdowns last year. General Motors Co., for example, said nine of its 11 U.S. assembly plants would forgo their summer shutdown period, allowing them to create up to 56,000 extra vehicles.

(Wall Street Journal, August 16, 2010)
http://online.wsj.com/article_email/SB10001424052748704268004575417202208196416-lMyQjAxMTAwMDEwOTExNDkyWj.html

Back to Top


U.S. Manufacturing Key Facts

Manufacturing Wage Rates

  • In July 2010, average hourly earnings in manufacturing were $18.57 (preliminary), up 0.22 percent from June 2010’s $18.53 (preliminary), and up 1.70 percent from June 2009’s $18.26.
       

(BLS/DOL Employment data from “The Employment Situation, USDL 10-1076,” released August 6, 2010; next release is September 3, 2010)
http://www.bls.gov/news.release/pdf/empsit.pdf

Manufacturing Wage Rates (Quarterly, Yearly) updated

  • During the second quarter of 2010, hourly compensation from previous quarter, annual rate (preliminary) was down 1.9 percent in total manufacturing, down 1.5 percent in durable manufacturing and down 2.4 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 6.4 percent in the first quarter, and increased 5.6 percent (revised) in annual average of 2009.

  • In the second quarter of 2010, hourly compensation of all manufacturing workers was down 1.9 percent (preliminary), compared to a 6.5 percent increase during the second quarter of 2009. Real hourly compensation in the total manufacturing sector decreased 1.2 percent (revised) in the second quarter of 2010, compared to 4.6 percent increase in the second quarter of 2009.

    (BLS/DOL Productivity data from “Productivity and Costs, Second Quarter 2010, Preliminary,” USDL 10-1101, released August 10, 2010; next release is September 2, 2010)
    http://www.bls.gov/news.release/pdf/prod2.pdf

  • Back to Top


    Manufacturing Profits

    • In the first quarter of 2010, manufacturing profits increased 46.5 percent, or $79.5 billion, to $250.4 billion from $170.9 billion in the fourth quarter. Compared with first quarter profits of 2009, manufacturing profits were up $109.4 billion in the first quarter of 2010.

    • First quarter 2010 profits for all non-financial industries (manufacturing being a subcategory) increased 27.6 percent from the fourth quarter of 2009 to $985.3 billion.

      (BEA/DOC GDP data from “Gross Domestic Product and Corporate Profits, BEA 10-37,”released July 30, 2010; next release is Aug 27, 2010)
      http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp2q10_adv.pdf

           

Back to Top


Manufacturing Employment

  • In July, 2010, manufacturing employment went up, with an increase of 36,000 jobs.

  • In July, durable goods manufacturing gained 36,000 jobs, with increases in transportation equipment (27,600), fabricated metal products (9,100), machinery (3,100), electrical equipment and appliances (1,600), computer and electronic products (1,100), primary metals (700), and miscellaneous manufacturing (600). Job losses occurred in wood products (-4,700), and furniture and related products (-2,900). There was no change in nonmetallic mineral products.

  • There was no net change in employment in nondurable goods manufacturing. However, job losses occurred in beverages and tobacco products (-1,300), paper and paper products (-1,200), and chemicals (-1,200), food manufacturing (-800), leather and allied products (-600), and petroleum and coal products (-300). Meanwhile, job gains occurred in plastics and rubber products (2,700), textile mills (1,000), apparel (600), printing and related support activities (500), and textile product mills (100).

  • The manufacturing employment of 11.7 million workers represents 9.0 percent of total non-farm employment.

    (BLS/DOL Employment data from “The Employment Situation, USDL-10-1076,” released August 6, 2010; next release is September 3, 2010) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production updated

  • In July 2010, manufacturing production was up 1.1 percent from previous month and was 8.1 percent above its year-earlier level.

  • Production of durable goods was up 2.1 percent from previous month. The durable manufacturing industries that registered increases in output included motor vehicles and parts (9.9 percent), nonmetallic mineral products (3.4 percent), aerospace and miscellaneous transportation equipment (1.7 percent), fabricated metal products (1.5 percent), miscellaneous (1.3 percent), machinery (1.1 percent), computer and electronic products (1.1 percent), furniture and related products (0.6 percent), and primary metal (0.3 percent). The durable industry that registered decreases in output included wood products (-1.2 percent) and electrical equipment, appliances and components (-0.6 percent).

  • The production of nondurable goods was up 0.1 percent from previous month. The nondurable manufacturing industries that registered increases in output included textile and product mills (2.7 percent), petroleum and coal products (0.9 percent), chemical (0.6 percent), paper (0.5 percent), plastics and rubber products (0.2 percent). The nondurable industry that registered decreases in output included apparel and leather (-1.7 percent), printing and support (-0.9 percent), and food, beverage and tobacco products (-0.8 percent).

  • The index for other manufacturing industries (non-NAICS) was up 1.5 percent from previous month.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released August 17, 2010; next release is September 15, 2010)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization updated

  • In July 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 0.8 percent points higher than their revised capacity utilization level in June 2010.

  • In durable manufacturing, capacity utilization operated at 70.8 percent capacity, up 1.4 points from June. Increased capacity utilization was registered in motor vehicles and parts (6.0 points), nonmetallic mineral products (2.0 points), fabricated metal products (1.2 points), aerospace and miscellaneous transportation equipment (1.1 points), machinery (0.9 points), furniture (0.7 points), miscellaneous (0.7 points), computer and electronic products (0.3 percent), primary metals (0.1 percent). Decreased capacity utilization was demonstrated in wood products (-0.4 points), and electrical equipment, appliances, and components (-0.4 points).

  • In non-durable manufacturing, capacity utilization increased 0.1 percentage points in July from June (revised) to 74.4 percent. Increased capacity utilization was registered in textile and product mills (2.1 points), petroleum and coal products (0.8 points), paper (0.6 points), chemical (0.4 points) and plastics and rubber products (0.1 points). Decreased capacity utilization was registered in apparel and leather (-0.8 points); food, beverage, and tobacco products (-0.6 points); and printing and support (-0.4 points).

  • The index for other manufacturing industries (non-NAICS) increased 1.0 points from last month.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released August 17, 2010; next release is September 15, 2010)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity updated

  • Manufacturing sector productivity (preliminary) rose 4.5 percent in the second quarter of 2010, as output increased 8.3 percent and hours increased 3.6 percent. Productivity grew 11.2 percent in the durable goods industries and shrank 2.8 percent in the nondurable goods industries. Unit labor costs in manufacturing declined 6.1 percent in the second quarter of 2010 and fell 6.9 percent over the last four quarters.

  • In durable goods industries, productivity (revised) grew 11.2 percent from previous quarter, annual rate in the second quarter of 2010, as output increased 14.1 percent, while hours worked also increased 2.7 percent.

  • In nondurable goods industries, productivity (revised) fell 2.8 percent from previous quarter, annual rate in the second quarter of 2010, as output increased 2.2 percent, while hours worked also increased 5.1 percent.

    (BLS/DOL Productivity data from “Productivity and Costs, Second Quarter 2010 Preliminary,” USDL 10-1101, released August 10, 2010; next release is September 2, 2010)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Trade updated

  • Year to date June 2010, U.S. manufactured goods exports accounted for 80.8 percent of all U.S. exports of goods, compared with 82.1 percent a year ago.

  • Manufactured goods exports in May were 3.1 percent higher than the previous month. Imports were up 10.6 percent.

  • The year to date June 2010 trade deficit in manufactured goods of $175.8 billion was $37.1 billion more when compared with $138.6 billion a year ago.

    (Census/BEA/DOC Foreign Trade Statistics data from “U.S. International Trade in Goods and Services, CB10-121, BEA10-40, FT-900(10-06),” released August 11, 2010; next release is September 9, 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 June, down two consecutive months, decreased $0.7 billion or 0.3 percent to $195.0 billion. This followed a 0.7 percent May decrease. Computers and electronic products, down four of the last five months, had the largest decrease, $1.3 billion or 4.1 percent to $31.3 billion.

  • In June, shipments increased in transportation equipment (2.8 percent), machinery (0.7 percent), and electrical equipment, appliances, components (0.6 percent). Shipment decreased in computer and electronic products (-4.1 percent), primary metals (-1.5 percent), and fabricated metal products (-0.7 percent).

    (Census Bureau/DOC data from “Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders (M3-1(10)-06, CB10-112),”July 28, 2010; next release is August 25, 2010)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices updated

  • In July 2010, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.3 percent compared to previous month.

  • The index for finished energy goods was down 0.9 percent from previous month.

  • A seasonally adjusted decrease of price from June to July was registered in home heating oil and distillates (-3.5 percent), No. 2 diesel fuel (-0.9 percent), liquefied petroleum gas (-10.0 percent), and gasoline price (-2.2 percent). A seasonally adjusted increase of price was registered in residential gas (3.1 percent), and residential electric power (1.2 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 10-0965,” released August 17, 2010; next release is September 16, 2010)
    http://www.bls.gov/news.release/pdf/ppi.pdf

       

Back to Top


Institute for Supply Management's (ISM) Index  

  • Economic activity in the manufacturing sector expanded in July for the 12th consecutive month, and the overall economy grew for the 15th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued to grow in July as the PMI registered 55.5 percent, a decrease of 0.7 percentage point when compared to June's reading of 56.2 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 July were: Inventories up 4.4 points to 50.2, Supplier Deliveries up 1.0 points to 58.3, Employment up 0.8 points to 58.6, New Orders decreased 5.0 points to 53.5, and Production decreased 4.4 points to 57.0.

    U.S. Industries Reporting Growth in July 2010

    • Plastics & Rubber Products
    • Miscellaneous Manufacturing
    • Paper Products
    • Electrical Equipment, Appliances & Components
    • Transportation Equipment
    • Primary Metals
    • Textile Mills
    • Computer & Electronic Products
    • Fabricated Metal Products
    • Chemical Products

    (Institute for Supply Management data released August 2, 2010; next release is September 1, 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