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manufacturing activity Archives - Shopfloor

Durable Goods Orders Off by 1.2% in October on Aircraft Sales Volatility, Long-Term Trend Remains Favorable

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The Census Bureau said that growth in new durable goods orders decreased by 1.2 percent in October, ending two straight months of solid gains in August and September. The decline in October stemmed largely from significant declines in defense and nondefense aircraft and parts orders, which can often be highly volatile from month to month. (The November numbers should rebound strongly on healthy airplane demand at the Dubai Airshow.) Excluding transportation equipment, new durable goods orders were up 0.4 percent, rising for the fourth consecutive month. New durable goods orders have generally trended in the right direction over the course of the past 12 months. New durable goods orders have increased by 1.0 percent since October 2016, but these gains were more sizable when transportation equipment were excluded, up 7.4 percent year-over-year.  Read More

Kansas City Fed: Manufacturing Activity in November Pulled Back Somewhat but “Remained Solid”

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The Kansas City Federal Reserve Bank said that manufacturing activity pulled back somewhat in November but “remained solid,” according to the latest survey data. The composite index of general business conditions declined from 23 in October, a level not seen since March 2011, to 16 in November. Even with some easing, manufacturers in the district are more upbeat today than one year ago, when the headline index was zero. In November, most of the key measures softened a little, while continuing to indicate healthy expansions overall. This included new orders (down from 27 to 22), production (down from 20 to 15), shipments (down from 25 to 20), employment (down from 21 to 16) and the average workweek (down from 12 to 7). On the hiring front, the sample comments once again cited challenges in attracting talent. In terms of downsides in the current data, exports (down from 8 to -2) contracted for the first time in four months, and raw material prices (down from 25 to 24) remained elevated. Read More

New York Fed: Manufacturing Activity Pulled Back from a 3-Year High but Remained Strong

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Manufacturing activity in the New York Federal Reserve Bank’s district pulled back in November from October’s 3-year high but remained strong. In the latest Empire State Manufacturing Survey, the composite index of general business conditions declined from 30.2 in October, a pace not seen since September 2014, to 19.4 in November. The underlying indicators were somewhat mixed. On the positive side, new orders (up from 18.0 to 20.7) accelerated, which was encouraging. The percentage of respondents saying that sales had increased in the month rose from 32.3 percent in October to 40.7 percent in November, which was more than enough to offset the gain in those suggesting reduced orders, up from 14.3 percent to 20.0 percent. Shipments (down from 27.5 to 18.4) and employment (down from 15.6 to 11.5) continued to expand at decent rates despite some easing, but unfilled orders (down from 2.3 to -4.6) and the average workweek (down from zero to -0.8) both turned slightly negative. Read More

ISM: Manufacturing Activity Remained Robust in October but Pulled Back from September’s 13-Year High

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The Institute for Supply Management (ISM) said that manufacturing activity expanded robustly in October, even as it pulled back from September’s reading, which was the fastest pace since May 2004. The ISM Manufacturing Purchasing Managers’ Index (PMI) decreased from 60.8 in September to 58.7 in October. The sample comments suggest that negative impacts from recent hurricanes explain at least part of October’s weaker reading. Nonetheless, the larger story remains one of strength, with business activity continuing to grow at healthy rates. For instance, indices for new orders (down from 64.6 to 63.4) and production (down from 62.2 to 61.0) exceeded 60—a threshold which would signify a vigorous expansion in demand and output in the sector—for the fifth consecutive month. Read More

Kansas City Fed: Manufacturing Activity Expanded at Fastest Pace Since March 2011

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The Kansas City Federal Reserve Bank said that manufacturing activity expanded at a 79-month high in the latest survey data. The composite index of general business conditions rose from 17 in September to 23 in October, a level not seen since March 2011 and a sign that sentiment has continued to strengthen since the spring. The higher figure in October came largely from a jump in those saying that new orders (up from 10 to 27) and employment (up from 18 to 21) had both accelerated, with the hiring figure also at a 79-month high. The sample comments tended to echo the challenge of finding talent. One respondent said, “Qualified, available and reliable labor (primarily hourly) continues to be the number one issue negatively impacting our potential growth.” Read More

Richmond Fed: Manufacturing Activity Pulled Back Slightly in October, but Outlook Remained Strong

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The Richmond Federal Reserve Bank reported that manufacturing activity in its district pulled back slightly in October, even as it continued to report expanding levels of activity overall. The composite index of general business activity declined from 19 in September—a seven-month high—to 12 in October, its lowest point since January. Even with some easing, however, the data remained encouraging. To illustrate this, the headline index has averaged 13.8 year to date in 2017, well above the average of 0.6 during the same 10-month time period in 2016. With that said, many of the key measures in October decelerated, including new orders (down from 20 to 17), shipments (down from 22 to 9), capacity utilization (down from 16 to 7), employment (down from 15 to 10) and the average workweek (down from 16 to 8). Read More