Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

September 2, 2011 [past updates]


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


Biweekly Notes

Nonfarm payroll employment unchanged in August; Manufacturing employment essentially unchanged

Nonfarm payroll employment was unchanged (0) in August, and the unemployment rate held at 9.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment in most major industries changed little over the month. Health care continued to add jobs, and a decline in information employment reflected a strike. Government employment continued to trend down, despite the return of workers from a partial government shutdown in Minnesota. The number of unemployed persons, at 14.0 million, was essentially unchanged in August, and the unemployment rate held at 9.1 percent. The rate has shown little change since April. Manufacturing employment was essentially unchanged in August (-3,000), following a gain of 36,000 in July. For the past 4 months, manufacturing has added an average of 14,000 jobs per month, compared with an average of 35,000 jobs per month in the first 4 months of the year.
Read More
(Bloomberg |September 2, 2011)

U.S. Manufacturing Grew in August, Easing Concerns About Second Recession

Manufacturing in the U.S. unexpectedly expanded in August, allaying concern the world’s largest economy is headed for another recession. The Institute for Supply Management’s factory index fell to 50.6 last month from 50.9 in July, the Tempe, Arizona-based group said today. Figures greater than 50 signal expansion. Economists projected the gauge would drop to 48.5, according to the median forecast in a Bloomberg News survey.
Read More
(Bloomberg |September 1, 2011)

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates updated

  • In August 2011, average hourly earnings in manufacturing were $18.96 (preliminary), down 0.1 percent from previous month, and up 1.8 percent from August 2010’s $18.63.

    (BLS/DOL Employment data from “The Employment Situation, USDL 11-1277,” released September 2, 2011; next release is October 7, 2011)
    http://www.bls.gov/news.release/pdf/empsit.pdf

       

Manufacturing Wage Rates (Quarterly, Yearly) updated

  • In the second-quarter of 2011, hourly compensation from previous quarter, annual rate (revised) was up 3.1 percent in total manufacturing, up 2.4 percent in durable manufacturing and up 4.1 percent in nondurable manufacturing.

  • In the second-quarter of 2011, hourly compensation of all manufacturing workers increased 2.8 percent (revised), compared to a 1.4 percent increase during the second-quarter of 2010. Real hourly compensation in the total manufacturing sector decreased -0.6 percent (revised) in the second-quarter of 2011, compared to -0.4 percent decrease in the second-quarter of 2010.

    (BLS/DOL Productivity data from “Productivity and Costs, Second Quarter 2011, Revised,” USDL 11-1276, released September 1, 2011; next release is November 3, 2011)
    http://www.bls.gov/news.release/pdf/prod2.pdf

Back to Top


Manufacturing Profits updated

  • In the first quarter of 2011, manufacturing profits increased 15.9 percent, or $29.9 billion, to $217.6 billion from $187.7 billion in the fourth quarter. Compared with first quarter profits of 2010, manufacturing profits were up $1.4 billion in the first quarter of 2011. (To be updated on next release)

  • Second quarter 2011 profits for all non-financial industries (manufacturing being a subcategory) increased $90.9 billion from the first quarter of 2011 to $949.7 billion.

    (BEA/DOC GDP data from “Gross Domestic Product, BEA 11-42,” released August 26, 2011; next release is September 29, 2011)
    http://www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp2q11_2nd.pdf

       

Back to Top


Manufacturing Employment updated

  • In August 2011, manufacturing employment went down, with a decrease of 3,000 jobs.

  • In August, durable goods manufacturing lost 3,000 jobs with decreases in fabricated metal products (-5,400), furniture and related products (-2,600), nonmetallic mineral products (-1,500), electrical equipment and appliances (-800), and primary metals (-500). However, job gain occurred in machinery (3,900), wood products (1,900), computer and electronic products (1,100), transportation equipment (900), and miscellaneous manufacturing (300).

  • In August, employment in nondurable goods manufacturing sector remained at the same level as previous month. Job gained occurred in beverages and tobacco products (3,100), paper and paper products (1,600), apparel (1,100), chemicals (1,100), printing and related support activities (800), and plastics and rubber products (700). Meanwhile, job losses occurred in food manufacturing (-5,200), leather and allied products (-1,400), textile mills (-900), petroleum and coal products (-600), and textile product mills (-400).

  • The manufacturing employment of 11.8 million workers represents 9.0 percent of total non-farm employment.

    (BLS/DOL Employment data from “The Employment Situation, USDL-11-1277,” released September 2, 2011; next release is October 7, 2011) http://www.bls.gov/news.release/pdf/empsit.pdf

       

Back to Top

Manufacturing Production

  • In July 2011, manufacturing production was up 0.6 percent from previous month and was 3.8 percent above its year-earlier level.

  • Production of durable goods was up 1.0 percent from previous month. The durable industries that registered increases in output included motor vehicles and parts (5.2 percent), primary metal (1.7 percent), aerospace and miscellaneous transportation equipment (1.3 percent), furniture and related products (0.7 percent), computer and electronic products (0.5 percent), nonmetallic mineral products (0.5 percent), fabricated metal products (0.4 percent), and wood products (0.2 percent). The durable industries that registered decreases in output included electrical equip., appliances, and components (-2.3 percent), miscellaneous (-0.2 percent). Meanwhile, output of machinery remained unchanged.

  • Production of nondurable goods was up 0.3 percent from the previous month. The nondurable manufacturing industries that registered increases in output included plastics and rubber products (1.2 percent), printing and support (1.0 percent), food, beverage, and tobacco products (0.6 percent), petroleum and coal products (0.2 percent), textile and product mills (0.2 percent), and paper (0.2 percent). The nondurable industries that registered decreases in output included apparel and leather (-1.8 percent), and chemicals (-0.3 percent).

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

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

       

Back to Top


Manufacturing Capacity Utilization

  • In July 2011, manufacturing industries (NAICS based) operated at 75.5 percent of capacity, 3.3 percentage points below their 1972-2010 average of 78.8 percent and 0.4 percent above their revised capacity utilization level in June 2011.

  • In July 2011, durable manufacturing, capacity utilization operated at 73.7 percent capacity, up 0.6 points from previous month. Increased capacity utilization was registered in motor vehicles and parts (3.0 points), primary metals (1.3 points), aerospace and miscellaneous transportation equipment (0.9 points), furniture and related products (0.6 points), fabricated metal products (0.4 points), nonmetallic mineral products (0.4 points), and wood products (0.3 points). Decreased capacity utilization was registered in electrical equip., appliances, and components (-1.6 points), miscellaneous (-0.4 points), and computer and electronic products (-0.3 points). Meanwhile, capacity utilization was unchanged for machinery.

  • In July 2011, non-durable manufacturing, capacity utilization operated at 77.5 percent, up 0.2 percent points from previous month. Increased capacity utilization was registered in plastics and rubber products (1.0 points), printing and support (0.7 points), textile and product mills (0.3 points), food, beverage, and tobacco products (0.3 points), paper (0.2 points), and petroleum and coal products (0.1 points). Decreased capacity utilization was registered in chemicals (-0.3 points), and apparel and leather (-1.2 points).

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

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

       

Back to Top


Manufacturing Productivity updated

  • Manufacturing sector productivity fell -1.5 percent in the second-quarter of 2011, as output increased 1.2 percent and hours increased 2.7 percent. Productivity was down -2.7 percent in the durable goods industries and up 1.3 percent in the nondurable goods industries. Unit labor costs in manufacturing increased 4.6 percent in the second-quarter of 2011, and increased 0.4 percent over the last four quarters.

  • In durable goods industries, productivity was down 2.7 percent from previous quarter, as output increased 2.2 percent, and hours worked increased 5.0 percent.

  • In nondurable goods industries, productivity was up 1.3 percent from previous quarter, as output increased 0.3 percent, while hours worked decreased -0.9 percent.

    (BLS/DOL Productivity data from “Productivity and Costs, Second-Quarter 2011, Revised,” USDL 11-1276, released September 1, 2011; next release is November 3, 2011)
    http://www.bls.gov/news.release/pdf/prod2.pdf

       

Back to Top


Manufacturing Trade

  • Manufactured goods exports in June were 0.02 percent lower than the previous month. Imports were up 1.41 percent.

  • Year to date June 2011, U.S. manufactured goods exports accounted for 85.0 percent of all U.S. exports of goods, compared with 86.6 percent a year ago.

  • The year to date June 2011 trade deficit in manufactured goods of $213.5 billion was $37.8 billion more when compared with $175.7 billion a year ago.

    (USA Trade Online, U.S. Census Bureau August 11 data release. Next release is September 8, 2011)
    http://www.usatradeonline.gov/

Back to Top


Manufactured Goods Shipments updated

  • Shipments of manufactured durable goods in July, up seven of the last eight months, increased $4.7 billion or 2.4 percent to $201.9 billion, revised from the previously published 2.5 percent increase. This followed a 1.1 percent June increase.

  • In July, shipments increased in transportation equipment (8.0 percent), primary metals (3.3 percent), computers and electronic products (2.1 percent), wood products (2.0 percent), and miscellaneous durable goods (1.6 percent). However, shipments decreased in electrical equipment, appliances, and components (-1.8 percent), furniture and related products (-1.8 percent), fabricated metal products (-0.9 percent), machinery (-0.8 percent), and nonmetallic mineral products (-0.2 percent).

    (Census Bureau/DOC data from “Full Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(11)-07, CB11-145),” August 31, 2011; next release is October 4, 2011)
    http://www.census.gov/manufacturing/m3/

       

Back to Top


Manufactured Goods Prices

  • In July 2011, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.4 percent compared to previous month.

  • The index for finished energy goods was down 0.6 percent from previous month.

  • A seasonally adjusted increase of price from June to July was registered in liquefied petroleum gas (2.5 percent), and residential electric power (1.2 percent). Decrease of price from June to July was registered in gasoline price (-2.8 percent), no. 2 diesel fuel (-2.1 percent), home heating oil and distillates (-1.5 percent), and residential gas (-0.9 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 11-1228,” released August 17, 2011; next release is September 14, 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 August for the 25th consecutive month, and the overall economy grew for the 27th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

  • Manufacturing continued its growth in August as the PMI registered 50.6 percent, a decrease of 0.3 percentage point when compared to July's reading of 50.9 percent. The PMI registered the lowest reading since July 2009, when it registered 49 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 August were: Inventories, 3.0 points increase to 52.3; New Orders, 0.4 points increase to 49.6; Supplier Deliveries, 0.2 points increase to 50.6; Production, 3.7 points decrease to 48.6; and Employment, 1.7 points decrease to 51.8.

    U.S. Industries Reporting Growth in August 2011

    • Wood Products
    • Petroleum & Coal Products
    • Miscellaneous Manufacturing
    • Food, Beverage & Tobacco Products
    • Fabricated Metal Products
    • Paper Products
    • Transportation Equipment
    • Chemical Products
    • Computer & Electronic Products
    • Machinery

    (Institute for Supply Management, data released September 1, 2011; next release is October 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