Trade Statistics Home|IAN Home

Manufacturing Biweekly Update

October 26, 2012 [past updates]


U.S. Manufacturing Trends Current Period Year-to-Date
Wage Rates no change up
Profits up up
Employment down up
Production up up
Capacity Utilization no change up
Productivity up up
Exports up up
Goods Shipments down up


Biweekly Notes

US futures up on of jobs, manufacturing numbers

Stock futures edged higher Thursday with some positive numbers coming out of the manufacturing sector and potentially more evidence of an improving jobs picture. Dow Jones industrial futures rose 61 points to 13,082. The broader S&P futures tacked on 7.3 points to 1,412.60. Nasdaq futures gained 16.75 points to 2,667.25. The report from the Commerce Department on orders for long-lasting U.S. manufactured goods shows a surge in September, the largest in nearly three years. Orders for durable goods leapt 9.9 a percent after a 13.1 percent decline in the previous month. However, orders for core capital goods, considered a good proxy for business investment, were unchanged. Also on Thursday, the Labor Department reported that weekly applications for U.S. unemployment aid fell last week to a seasonally adjusted 369,000, which would signal modest hiring. Anything below 375,000 can lower the unemployment rate. In September, unemployment dipped to 7.8 percent. That is the lowest level since January 2009.

(AP| CNBC| October 25, 2012)
[Read More]

Manufacturers in Philadelphia region expands in October

Manufacturing in the Philadelphia region expanded in October following five months of declines, a positive sign for a U.S. manufacturing sector which had been weakening for much of the year. The Federal Reserve Bank of Philadelphia reported Thursday that its index of regional manufacturing activity had a reading of 5.7 in October following a -1.9 reading in September. Any reading above zero indicates expansion. Manufacturing, which helped lift the country out of recession, had been slowing since the spring, battered by slower domestic demand and a slowing global economy which was hurting exports. The better-than-expected reading from the Philadelphia survey followed a positive report on national manufacturing conditions. The Institute for Supply Management on Oct. 1 said that its manufacturing index grew for the first time in four months in September.

(AP| Foxnews| October 18, 2012)
[Read More]

Back to Top

U.S. Manufacturing Key Facts

Manufacturing Wage Rates

  • In September 2012, average hourly earnings in manufacturing were unchanged from previous month at $19.15, but up 1.11 percent from September 2011’s $18.94.

    (BLS/DOL Employment data from “The Employment Situation, USDL 12-1981,” released October 5, 2012; next release is November 2, 2012)
    http://www.bls.gov/news.release/pdf/empsit.pdf

       

Manufacturing Wage Rates (Quarterly, Yearly)

  • In the second-quarter of 2012, hourly compensation from previous quarter, annual rate (revised) was up (+0.9 percent) in total manufacturing, up (+0.4 percent) in durable manufacturing and up (+2.0 percent) in nondurable manufacturing.

  • In the second-quarter of 2012, hourly compensation of all manufacturing workers increased (+0.4 percent), compared to a (+2.9 percent) increase during the second-quarter of 2011. Real hourly compensation in the total manufacturing sector decreased (-1.4 percent) in the second-quarter of 2012, compared to (-0.4 percent) decrease in the second-quarter of 2011.

    (BLS/DOL Productivity data from “Productivity and Costs, Second Quarter 2012,” USDL 12-1795, released September 5, 2012; next release is November 1, 2012)
    http://www.bls.gov/news.release/pdf/prod2.pdf

Back to Top


Manufacturing Profits

  • In the second quarter of 2012, manufacturing profits increased 2.6 percent, or $9.3 billion, to $372.8 billion from $363.5 billion in the first quarter. Compared with second quarter profits of 2011, manufacturing profits were up $143.6 billion in the second quarter of 2012.

  • Second quarter 2012 profits for all non-financial industries (manufacturing being a subcategory) increased $29.0 billion from the first quarter to $1245.8 billion.

    (BEA/DOC GDP data from “Gross Domestic Product, BEA 12-44,” released September 27, 2012; next release is October 26, 2012)
    http://www.bea.gov/newsreleases/national/gdp/2012/pdf/gdp2q12_3rd.pdf

           

    Back to Top


    Manufacturing Employment

    • In September 2012, manufacturing employment went down, with a decrease of 16,000 jobs.

    • In September, durable goods manufacturing lost 13,000 jobs with decreases in computer and electronic products (-5,500), primary metals (-3,400), transportation equipment (-3,000), miscellaneous manufacturing (-1,500), nonmetallic mineral products (-900), electrical equipment and appliances (-200), and machinery (-200). However, job gains were reported in wood products (+1,700), and furniture and related products (+200). Meanwhile there was no change of employment in fabricated metal products.

    • In September, nondurable goods manufacturing lost 3000 jobs with increases in chemicals (+1,600), food manufacturing (+600), textile mills (+400), beverages and tobacco products (+300), and petroleum and coal products (+200), However, job loss occurred in printing and related support activities (-3,200), paper and paper products (-1,100), apparel (-1,000), textile product mills (-400), plastics and rubber products (-200), and leather and allied products (-100).

    • The manufacturing employment of 11.9 million workers represents 8.9 percent of total non-farm employment.

      (BLS/DOL Employment data from “The Employment Situation, USDL 12-1981,” released October 5, 2012; next release is November 2, 2012) http://www.bls.gov/news.release/pdf/empsit.pdf

           

    Back to Top

    Manufacturing Production UPDATED

    • In September 2012, manufacturing production was up (+0.2 percent) from previous month and was up (+3.2 percent) above its year-earlier level.

    • In September 2012, production of durable goods was up (+0.1 percent) from the previous month. The durable industries that registered increases in output included aerospace and miscellaneous transportation equipment (+2.4 percent), electrical equip., appliances, and components (+1.8 percent), wood products (+0.7 percent), fabricated metal products (+0.6 percent), furniture and related products (+0.5 percent), machinery (+0.4 percent), computer and electronic products (+0.1 percent), and miscellaneous manufactured product (+0.1 percent). The durable industry that registered decrease in output included motor vehicles and parts (-2.5 percent), and primary metals (-1.0 percent). There was no change of output in nonmetallic mineral products.

    • In September 2012, production of nondurable goods was up (+0.3 percent) from the previous month. The nondurable industries that registered increases in output included apparel and leather (+1.6 percent), food, beverage and tobacco products (+1.1 percent), textile and product mills (+0.4 percent), and paper (+0.2 percent). The durable industry that registered decrease in output included printing and support (-1.1 percent), plastics and rubber products (-0.7 percent), and petroleum and coal products (-0.1 percent). There was no change of output in chemicals.

    • In September 2012, production of other manufacturing goods (non-NAICS) was down (-0.1 percent).

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

           

    Back to Top


    Manufacturing Capacity Utilization UPDATED

    • In September 2012, manufacturing industries (NAICS based) operated at 77.4 percent of capacity, the same level of the previous month, and down (-1.3 percentage points) below their 1972-2011 average of 78.7 percent.

    • In September 2012, durable manufacturing, capacity utilization operated at 76.8 percent capacity, down (-0.1 percentage points) from the previous month. Increased capacity utilization was registered in aerospace and miscellaneous transportation equipment (+1.6 points), electrical equip., appliances, and components (+1.4 points), wood products (+0.6 points), fabricated metal products (+0.5 points), furniture and related products (+0.4 points), machinery (+0.2 points), and nonmetallic mineral products, (+0.2 points). Decreased capacity utilization was registered in motor vehicles and parts (-2.2 points), primary metals (-0.8 points), miscellaneous (-0.3 points), and computer and electronic products (-0.3 points).

    • In September 2012, non-durable manufacturing, capacity utilization operated 78.1 percent capacity, up (+0.2 points) from the previous month. Increased capacity utilization was registered in apparel and leather (+1.1 points), food, beverage, and tobacco products (+0.7 points), textile and product mills (+0.4 points), paper (+0.3 points), and petroleum and coal products (+0.2 points). Decreased capacity utilization was registered in printing and support (-0.7 points), and plastics and rubber products (-0.6 points). There was no change of capacity utilization in chemicals.

    • 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 October 16, 2012; next release is November 16, 2012)
      http://www.federalreserve.gov/releases/g17/Current/g17.pdf

           

    Back to Top


    Manufacturing Productivity

    • Manufacturing sector productivity was up (+0.1 percent) in the second-quarter of 2012, as output increased (+1.5 percent) and hours increased (+1.4 percent). Productivity was up (+3.7 percent) in the durable goods industries and down (-3.8 percent) in the nondurable goods industries. Unit labor costs in manufacturing increased (+0.8 percent) in the second-quarter of 2012, and decreased (-2.4 percent) over the last four quarters.

    • In durable goods industries, productivity was up (+3.7 percent) from previous quarter, as output increased (+5.4 percent), while hours worked increased (+1.6 percent).

    • In nondurable goods industries, productivity was down (-3.8 percent) from previous quarter, as output decreased (-2.8 percent), and hours worked increased (+1.0 percent).

      (BLS/DOL Productivity data from “Productivity and Costs, Second Quarter 2012,” USDL 12-1795, released September 5, 2012; next release is November 1, 2012)
      http://www.bls.gov/news.release/pdf/prod2.pdf

           

    Back to Top


    Manufacturing Trade

    • • Manufactured goods exports in August 2012 were (+5.85 percent) higher than the previous month. Imports were (+1.65 percent) higher.

    • • Year-to-date August 2012, U.S. manufactured goods exports accounted for 87.3 percent of all U.S. exports of goods, compared with 85.9 percent a year ago.

    • The year-to-date August 2012 trade deficit in manufactured goods of $302.0 billion was $10.0 billion more when compared with $292.0 billion a year ago.

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

    Back to Top


    Manufactured Goods Shipments

    • Shipments of manufactured durable goods in August, down two of the last three months, decreased $6.7 billion or 2.9 percent to $222.4 billion, revised from the previously published 3.0 percent decrease. This followed a 1.8 percent July increase.

    • In August, shipments increased in furniture and related products (+0.8 percent), miscellaneous durable goods (+0.7 percent), wood products (+0.4 percent), and nonmetallic mineral products (+0.2 percent). However, shipments decreased in transportation equipment (-7.9 percent), computers and electronic products (-3.8 percent), primary metals (-0.6 percent), machinery (-0.3 percent), and electrical equipment, appliances, and components (-0.3 percent). There was no change in shipment for fabricated metal products.

      (Census Bureau/DOC data from “Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(12)-8, CB12-187),” October 4, 2012; next release is November 2, 2012)
      http://www.census.gov/manufacturing/m3/

           

    Back to Top


    Manufactured Goods Prices

    • In September 2012, there was no change in the Producer Price Index (PPI) for finished goods, except foods and energy, when compared to previous month.

    • The index for finished energy goods was up (+4.7 percent) from previous month.

    • A seasonally adjusted increase in price from August to September was registered in gasoline (+9.8 percent), no. 2 diesel fuel (+9.2 percent), liquefied petroleum gas (+3.5 percent), home heating oil and distillates (+3.1 percent), residential gas (+1.3 percent), and residential electric power (+0.3 percent).

      (BLS/DOL data from “Producer Price Indexes, USDL 12-2032,” released October 12, 2012; next release is November 14, 2012)
      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 September following three consecutive months of slight contraction, and the overall economy grew for the 40th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.

    • Manufacturing expanded in September as the PMI™ registered 51.5 percent, an increase of 1.9 percentage points when compared to Augusts' reading of 49.6 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 September were New Orders +5.2 points increase to 52.3; Employment, +3.1 points increase to 54.7; Production, +2.3 points increase to 49.5; Supplier Deliveries, +1.0 points increase to 50.3; and Inventories, -2.5 points decrease to 50.5.

      U.S. Industries Reporting Growth in September 2012

      • Textile Mills
      • Food, Beverage & Tobacco Products
      • Printing & Related Support Activities
      • Wood Products
      • Apparel, Leather & Allied Products
      • Paper Products
      • Petroleum & Coal Products
      • Primary Metals
      • Fabricated Metal Products
      • Furniture & Related Products
      • Miscellaneous Manufacturing

      (Institute for Supply Management, data released October 1, 2012; next release is November 1, 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