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Manufacturing Biweekly Update
October 28, 2011 [past updates]
| Wage Rates
Manufacturing grows in Philadelphia region
Manufacturing grew in the Philadelphia region in October after contracting for two straight months, a sign factories are recovering after a sluggish summer. An index of regional manufacturing activity jumped to 8.7 from -17.5 in September, the Federal Reserve Bank of Philadelphia said Thursday. It marked the best reading in six months. A positive reading suggests growth. Economists were encouraged by signs of factory growth in the region. Weaker manufacturing in the Northeast and Mid-Atlantic regions intensified recession fears in August. The Philadelphia index plummeted in August to -30.7, down from a barely positive reading in July. Manufacturers were also more optimistic about future business. The index measuring companies' outlook six months in the future rose to 27.2 from 21.4. The survey covers manufacturing companies in Pennsylvania, New Jersey and Delaware. It follows a report earlier this week by the New York Fed that factory activity in that region continued to contract in October, though at a slightly slower pace.
(AP |Yahoo News |October 20, 2011)
US Manufacturing Gets A Boost
A key measure shows orders for many U.S.-made goods posted their strongest gain in six months in September. The Commerce Department says outside the volatile transportation sector, orders for durable goods in the overall economy gained 1.7 percent for the month. If you include orders for civilian aircraft and other transportation items, the month saw a decline in orders. But experts say they get a clearer picture of the economy by excluding transportation orders that swing wildly from month to month. Wednesday's report covers expensive manufactured items intended to last more than three years, which economists call “durable goods.” Manufacturing has been helping the U.S. economy recover from the worst recession in decades. The strong durable goods report is one reason that some economists predict a report on Thursday will show that U.S. economic growth speeded up in July, August, and September.
(VOA |October 26, 2011)
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U.S. Manufacturing Key Facts
Manufacturing Wage Rates
- In September 2011, average hourly earnings in manufacturing remained the same level as previous month at $18.92 (preliminary), but up 1.4 percent from September 2010’s $18.65.
(BLS/DOL Employment data from “The Employment Situation, USDL 11-1441,” released October 7, 2011; next release is November 4, 2011)
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)
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- • In the second quarter of 2011, manufacturing profits increased 14.8 percent, or $32.3 billion, to $249.9 billion from $217.6 billion in the first quarter. Compared with second quarter profits of 2010, manufacturing profits were up $12.6 billion in the second quarter of 2011.
- • Second quarter 2011 profits for all non-financial industries (manufacturing being a subcategory) increased $87.1 billion from the first quarter of 2011 to $945.9 billion.
(BEA/DOC GDP data from “Gross Domestic Product, BEA 11-49,” released September 29, 2011; next release is October 27, 2011)
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- In September 2011, manufacturing employment went down, with a decrease of 13,000 jobs.
- In September, durable goods manufacturing lost 8,000 jobs with decreases in furniture and related products (-3,600), miscellaneous manufacturing (-3,000), fabricated metal products (-2,900), nonmetallic mineral products (-1,600), electrical equipment and appliances (-1,400), and wood products (-900). However, job gains occurred in machinery (2,800), primary metals (1,400), transportation equipment (1,000), and computer and electronic products (600).
- In September, employment in nondurable goods manufacturing sector lost 5,000 jobs with decreases in printing and related support activities (-4,200), textile product mills (-2,200), beverages and tobacco products (-1,800), food manufacturing (-900), and textile mills (-700). Meanwhile, job gain occurred in chemicals (1,400), plastics and rubber products (1,400), petroleum and coal products (800), leather and allied products (600), paper and paper products (500), and apparel (300).
- The manufacturing employment of 11.7 million workers represents 8.9 percent of total non-farm employment.
(BLS/DOL Employment data from “The Employment Situation, USDL-11-1441,” released October 7, 2011; next release is November 4, 2011)
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Manufacturing Production UPDATED
- In September 2011, manufacturing production was up 0.4 percent from previous month and was 3.9 percent above its year-earlier level.
- Production of durable goods was up 0.6 percent from previous month. The durable industries that registered increases in output included wood products (2.4 percent), aerospace and miscellaneous transportation equipment (2.3 percent), miscellaneous (1.4 percent), electrical equip., appliances, and components (1.3 percent), computer and electronic products (1.0 percent), motor vehicles and parts (0.7 percent), and machinery (0.2 percent). The durable industries that registered decreases in output included furniture and related products (-2.2 percent), nonmetallic mineral products (-0.9 percent), primary metal (-0.4 percent), and fabricated metal products (-0.3 percent).
- Production of nondurable goods was up 0.2 percent from the previous month. The nondurable manufacturing industries that registered increases in output included paper (1.1 percent), food, beverage, and tobacco products (0.2 percent), chemicals (0.2 percent), and plastics and rubber products (0.1 percent). The nondurable industries that registered decreases in output included apparel and leather (-1.2 percent), printing and support (-0.5 percent), textile and product mills (-0.1 percent), and petroleum and coal products (-0.1 percent).
- Other manufacturing industries (non-NAICS) was down 0.7 percent.
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released October 17, 2011; next release is November 16, 2011)
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Manufacturing Capacity Utilization UPDATED
- In September 2011, manufacturing industries (NAICS based) operated at 75.7 percent of capacity, 3.1 percentage points below their 1972-2010 average of 78.8 percent, and 0.2 percent above their revised capacity utilization level in August 2011.
- In September 2011, durable manufacturing, capacity utilization operated at 74.3 percent capacity, up 0.3 points from previous month. Increased capacity utilization was registered in aerospace and miscellaneous transportation equipment (1.7 points), wood products (1.6 points), electrical equip., appliances, and components (1.1 points), miscellaneous (0.8 points), motor vehicles and parts (0.3 points), machinery (0.1 points), and computer and electronic products (0.1 points). Decreased capacity utilization was registered in furniture and related products (-1.5 points), nonmetallic mineral products (-0.3 points), primary metals (-0.2 points), and fabricated metal products (-0.2 points).
- In September 2011, non-durable manufacturing, capacity utilization operated 77.3 percent capacity, up 0.1 from previous month. Increased capacity utilization was registered in paper (0.9 points), plastics and rubber products (0.2 points), textile and product mills (0.1 points), and chemicals (0.1 points). Decreased capacity utilization was registered in apparel and leather (-0.8 points), printing and support (-0.3 points), petroleum and coal products (-0.2 points). Meanwhile, capacity utilization was unchanged for food, beverage, and tobacco products.
- The index for other manufacturing industries (non-NAICS) decreased 0.4 points.
(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released October 15, 2011; next release is November 16, 2011)
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- 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)
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Manufactured Goods Shipments
- Shipments of manufactured durable goods in August, down following three consecutive monthly increases, decreased $0.3 billion or 0.1 percent to $201.1 billion, revised from the previously published 0.2 percent decrease. This followed a 2.1 percent July increase.
- In August, shipments increased in machinery (5.2 percent), electrical equipment, appliances, and components (3.1 percent), furniture and related products (2.9 percent), fabricated metal products (0.7 percent), nonmetallic mineral products (0.7 percent), and computers and electronic products (0.2 percent). However, shipments decreased in transportation equipment (-4.6 percent), wood products (-1.4 percent), primary metals (-0.7 percent), and miscellaneous durable goods (-0.6 percent).
(Census Bureau/DOC data from “Full Report on Manufacturers’ Shipments, Inventories and Orders (M3-2(11)-08, CB11-166),” October 4, 2011; next release is November 3, 2011)
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Manufactured Goods Prices UPDATED
- In September 2011, 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 up 2.3 percent from previous month.
- A seasonally adjusted increase of price from August to September was registered in no. 2 diesel fuel (7.3 percent), liquefied petroleum gas (5.6 percent), gasoline price (4.2 percent), home heating oil and distillates (2.3 percent), and residential electric power (0.3 percent). A decrease in price from August to September was registered in residential gas (-0.7 percent).
(BLS/DOL data from “Producer Price Indexes, USDL 11-1497,” released October 18, 2011; next release is November 15, 2011)
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Institute for Supply Management's (ISM) Index
- Economic activity in the manufacturing sector expanded in September for the 26th consecutive month, and the overall economy grew for the 28th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
- Manufacturing continued its growth in September as the PMI registered 51.6 percent, an increase of 1 percentage point when compared to August's reading of 50.6 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: Supplier Deliveries, 0.8 points increase to 51.4; Production, 2.6 points increase to 51.2; Employment, 2.0 points increase to 53.8; Inventories, 0.3 points decrease to 52.0; and New Orders, remained the same at 49.6.
U.S. Industries Reporting Growth in September 2011
- Wood Products
- Petroleum & Coal Products
- Food, Beverage & Tobacco Products
- Apparel, Leather & Allied Products
- Nonmetallic Mineral Products
- Miscellaneous Manufacturing
- Transportation Equipment
- Plastics & Rubber Products
- Printing & Related Support Activities
- Chemical Products
- Computer & Electronic Products
(Institute for Supply Management, data released October 3, 2011; next release is
November 1, 2011)
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Director of Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce