manufacturing

ISM Manufacturing Contracts for 3rd Month in a Row - PMI 49.6% for August 2012

The August 2012 ISM Manufacturing Survey PMI decreased, -0.2 percentage points, to 49.6% and is in contraction for the 3rd month in a row. In July 2009 the PMI registered 49%. Shrinkage is the theme of August's ISM manufacturing survey as the shadows of 2009 infiltrate this report.

 

Manufacturing New Orders Increase 2.8% for July 2012

The Manufacturers' Shipments, Inventories, and Orders report shows factory new orders increased 2.8% for July. This is quite a turn around and new orders have increased two of the last three months, although May and June together were a wash, with +0.5% and -0.5% monthly changes in new orders respectively.

Displaced Worker Report Shows Not Enough People Are Landing New Jobs

The BLS released their displaced workers survey and the results paint a dark and foreboding picture for the American worker. Of the people who lost their jobs through offshore outsourcing, plant closures, business failures and layoffs during 2009-2011, by January 2012 only 56% of them had gotten another job. These are people who held the job they lost three years or longer and there were a whopping 6.12 million people in this category.

What's more disturbing, as if that's not enough, is the age breakdown of displaced workers who were in a job three years or longer. While the job losses seem reasonably evenly distributed, those finding other jobs appear not to be, as shown in the below four pie charts.

displacedworkersage

Industrial Production Increases 0.6% for July 2012

The Federal Reserve's Industrial Production & Capacity Utilization report, G.17, shows a 0.6% increase in industrial production for July 2012, an improvement from recent months. Manufacturing increased 0.5%, mining 1.2% and utilities 1.3%. June industrial production was revised down, from 0.4% to 0.1% and May revised up from -0.1% to 0.2%. This report is also known as output for factories and mines.

Factory Orders Decline, -0.5% for June 2012

The Manufacturers' Shipments, Inventories, and Orders report shows a -0.5% new orders decrease for June. The last three of four months in manufacturing new orders have shown declines. May revised down, from +0.7% to +0.5%. This Census statistical release is called Factory Orders by the press and covers both durable and non-durable manufacturing orders, shipments and inventories.

ISM - Manufacturing Contracts for the 2nd Month in a Row - PMI 49.8% for July 2012

The July 2012 ISM Manufacturing Survey PMI increased, +0.1 percentage points, to 49.8%, but is still in contraction, the 2nd month in a row. Previously PMI showed 34 months of growth and this month's PMI shows June was not a fluke. In July 2009 the PMI registered 49%. Employment this month dropped -4.6 percentage points and new orders are still in contraction.

 

Manufacturing Contracts - ISM PMI 49.7% for June 2012

The June 2012 ISM Manufacturing Survey PMI declined, -3.8 percentage points, to 49.7% and indicates U.S. Manufacturing just went into contraction after 34 months of growth. In July 2009 the PMI registered 49%. New orders simply fell off of a cliff and hasn't been this low since April 2009. Prices paid for raw materials absolutely plunged. This is a downright frightening and terrible report.

 

Industrial Production Declines -0.1%, Capacity Utilization Drops for May 2012

The Federal Reserve's Industrial Production & Capacity Utilization report, G.17, shows a -0.1% decrease in industrial production for May 2012, a sign of more sluggishness for the economy. Manufacturing dropped -0.4%, mining and utilities increased their production, 0.9% and 0.8% respectively. Within manufacturing, motor vehicles & parts dropped -1.5% for May.

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