Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

September 16, 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 up up
Exports down up
Goods Shipments up up


Biweekly Notes

Industrial Production in U.S. Unexpectedly Rose in August for Fourth Month

Industrial production in the U.S. unexpectedly rose in August, signaling manufacturing will support the world’s largest economy. Output at factories, mines and utilities climbed 0.2 percent after a 0.9 percent gain in July, figures from the Federal Reserve showed today. Economists had forecast no change, according to the median estimate in a Bloomberg News survey. Factory production, which makes up 75 percent of the total, advanced 0.5 percent. Overseas demand and capital spending by American companies may keep assembly lines busy and boost manufacturing, which led the recovery from the recession. At the same time, unemployment above 9 percent and the lack of jobs is limiting sales, one reason factories may find it harder to gain speed. "Manufacturing will continue to expand,” said Kurt Rankin, an economist at PNC Financial Services Group Inc. in Pittsburgh, who accurately projected the gain in industrial production. “Emerging markets are still growing, and that’s giving an opportunity for exports of U.S.-manufactured goods.”
Read More
(Bloomberg |September 15, 2011)

Manufacturing in New York Fed Region Contracts at Faster Pace

Manufacturing in the New York region unexpectedly contracted in September at a faster pace, underscoring concerns a mainstay of the recovery is fading. The Federal Reserve Bank of New York’s general economic index dropped to minus 8.8, the weakest reading since November, from minus 7.7 in August. Economists projected an increase to minus 4, based on the median of 54 forecasts in a Bloomberg News survey. Readings less than zero signal companies in the so- called Empire State Index, which covers New York, northern New Jersey, and southern Connecticut, are cutting back. As a stagnant labor market and slumping stock values weaken household confidence and spending, manufacturers may slow assembly lines to prevent inventories from piling up. Factory payrolls fell last month for the first time since October, depriving the recovery of support while unemployment exceeds 9 percent.
Read More
(Bloomberg |September 15, 2011)

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates

  • 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)

  • 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

  • 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 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

  • 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 updated

  • In August 2011, manufacturing production was up 0.5 percent from previous month and was 3.8 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 aerospace and miscellaneous transportation equipment (2.2 percent), motor vehicles and parts (1.7 percent), computer and electronic products (1.3 percent), primary metal (1.2 percent), furniture and related products (1.2 percent), electrical equip., appliances, and components (1.0 percent), and miscellaneous (0.5 percent). The durable industries that registered decreases in output included wood products (-0.8 percent), machinery (-0.4 percent), and nonmetallic mineral products (-0.2 percent). The output of fabricated metal products remained unchanged.

  • Production of nondurable goods was up 0.1 percent from the previous month. The nondurable manufacturing industries that registered increases in output included petroleum and coal products (1.1 percent), and chemicals (0.2 percent). The nondurable industries that registered decreases in output included textile and product mills (-1.0 percent), printing and support (-0.9 percent), paper (-0.3 percent), apparel and leather (-0.3 percent).,food, beverage, and tobacco products (-0.2 percent), and plastics and rubber products (-0.2 percent).

  • Other manufacturing industries (non-NAICS) was up 0.8 percent.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released September 15, 2011; next release is October 17, 2011)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Capacity Utilization updated

  • In August 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 0.2 percent above their revised capacity utilization level in July 2011.

  • In August 2011, durable manufacturing, capacity utilization operated at 74.0 percent capacity, up 0.5 points from previous month. Increased capacity utilization was registered in aerospace and miscellaneous transportation equipment (1.6 points), motor vehicles and parts (1.0 points), primary metals (1.0 points), furniture and related products (1.0 points), electrical equip., appliances, and components (0.8 points), computer and electronic products (0.4 points), miscellaneous (0.2 points), and fabricated metal products (0.1 points). Decreased capacity utilization was registered in wood products (-0.4 points), and machinery (-0.4 points). Meanwhile, capacity utilization was unchanged for nonmetallic mineral products.

  • In August 2011, non-durable manufacturing, capacity utilization operated remained at 77.2 percent. Increased capacity utilization was registered in petroleum and coal products (0.8 points).and chemicals (0.2 points), and decreased capacity utilization was registered in textile and product mills (-0.6 points), printing and support (-0.5 points), food, beverage, and tobacco products (-0.3 points), paper (-0.2 points), and apparel and leather (-0.2 points). Meanwhile, capacity utilization was unchanged for plastics and rubber products.

  • The index for other manufacturing industries (non-NAICS) increased 0.6 points.

    (Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released September 15, 2011; next release is October 17, 2011)
    http://www.federalreserve.gov/releases/g17/Current/g17.pdf

       

Back to Top


Manufacturing Productivity

  • 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 updated

  • Manufactured goods exports in July were 1.49 percent lower than the previous month. Imports were 1.52 percent lower.

  • Year to date July 2011, U.S. manufactured goods exports accounted for 85.2 percent of all U.S. exports of goods, compared with 86.7 percent a year ago.

  • The year to date July 2011 trade deficit in manufactured goods of $254.1 billion was $39.5 billion more when compared with $214.6 billion a year ago.

    (USA Trade Online, U.S. Census Bureau September 8 data release. Next release is October 13, 2011)
    http://www.usatradeonline.gov/

Back to Top


Manufactured Goods Shipments

  • 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 updated

  • In August 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 down 1.0 percent from previous month.

  • A seasonally adjusted increase of price from July to August was registered in residential gas (0.8 percent). A decrease in price from July to August was registered in liquefied petroleum gas (-6.0 percent), no. 2 diesel fuel (-5.9 percent), home heating oil and distillates (-1.2 percent), gasoline price (-1.0 percent), and residential electric power (-0.1 percent).

    (BLS/DOL data from “Producer Price Indexes, USDL 11-1326,” released September 14, 2011; next release is October 18, 2011)
    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 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