Advanced Search  
Submit Search
Print | E-mail Page
Helping U.S. businesses by
Promoting Trade and Investment
Strengthening Industry Competitiveness
Ensuring Fair Trade
Browse by organization
U.S. Commercial
Service
Manufacturing and Services
Market Access and Compliance
Import Administration
 


Manufacturing Biweekly Update

January 26, 2007 (Past Updates)

 

U.S. Manufacturing Trends Current Period Year-to-Date Previous Year
Wage Rates up up up
Profits up up up
Employment down down down
Production up up up
Capacity Utilization up up up
Productivity up up up
Exports na up up
Goods Shipments up up up

 

Biweekly Notes

BUSINESSES AND ENVIRONMENTAL LEADERS UNITE TO CALL FOR ACTION ON GLOBAL CLIMATE CHANGE

On January 22, 2007, the U.S. Climate Action Partnership (USCAP) laid out a solutions-based report, titled “A Call for Action”, for a mandatory economy-wide, market-driven approach to climate protection. USCAP consists of Alcoa, BP America, Caterpillar, Duke Energy, DuPont, FPL Group, General Electric, Lehman Brothers, PG&E, and PNM Resources, along with four leading non-governmental organizations – Environmental Defense, Natural Resources Defense Council, Pew Center on Global Climate Change, and World Resources Institute. These and other emission issues, e.g. energy, finance, and investment were presented at the North America andthe Carbon Markets Conference held at the Reagan Building on January 17-18, 2007, hosted by Point Carbon, Washington DC based, global energy market analysis management consultants.

Source: http://www.us-cap.org/media/release.pdf
http://www.environmental-resource.com/report.asp?id=531

 

U.S. Manufacturing Key Stats

Manufacturing Wage Rates

Manufacturing Profits

BEA’s estimates of manufacturing profits for the third quarter of 2006 were up over the previous quarter and over the previous year. Manufacturing profits for the third quarter of 2006 rose 14.5 percent or $42.0 billion to $331.9 billion from $289.9 billion of the second quarter. In comparison to the third quarter of 2005, corporate profits for manufacturing rose $71.2 billion or 27.3 percent since the third quarter of 2005 and were above corporate profits at the end of 2005. Third quarter profit estimates were available for all Non-financial industries, manufacturing being a subcategory. BEA annualized profits for all of these industries were currently reported at $1,081.0 billion, up 7.6 percent from the second quarter of this year and up 19.6 percent from the third quarter of last year. [Profits Data; Quarterly Change Data; Graph]

(BEA/DOC GDP data from “Gross Domestic Product and Corporate Profits, BEA 06-58,” Released December 29, 2006; next release is January 31, 2007) Current GDP Data ; Archived GDP Data

Manufacturing Employment

In December 2006, manufacturing employment decreased 12,000 to 14.2 million from November. The decline was reported in both, durable and non-durable sub-sectors. Within durable goods, employment continued to decline in industries related to construction, such as Wood Products (-3,000), Furniture and Related Products (-2,400), and Primary metals (-2,800). In addition, job loss was reported in Motor Vehicles and Parts (-4,600). However, employment increased in Computer and Electronic Products (1,000), and Fabricated Metal Products (2,900). For non-durable goods, job losses registered in Food Manufacturing (-2,400), Textile Mills (-1,900), and Chemicals (-1,400). Since December 2005, manufacturing employment has declined by 72,000. Nonetheless, manufacturing employs 14.2 million workers and represents 10.4 percent of total non-farm employment. [Employment Data; Monthly Change Data; Annual Change Data; Graph]

(BLS/DOCEmployment data from “The Employment Situation December 2006, USDL 07-0003,” released January 5, 2007; next release is February 2, 2007) Current Employment Data; Archived Employment Data

Manufacturing Production

In December 2006, manufacturing output increased 0.7 percent from November, reflecting a 1.1 percent increase in durable and 0.3 percent gain in non-durable manufacturing. However, output for the fourth quarter as a whole was down 1.4 percent (annual rate) from the third quarter. In Durable Manufactures, Motor Vehicles and Parts reported the largest gain (2.6 percent), while Computer and Electronic Product manufacturing rose 2.0 percent, a 20.2 percent increase over its year ago level. Also, on the rise in production were Aerospace and Miscellaneous Durables. Among non-durable goods, industries that had significant increases in December were Petroleum & Coal Products (2.7 percent), and Apparel and Leather Products (1.4 percent). In contrast, the production indexes for Food, Beverage, and Tobacco Products, for Textile and Product Mills, and for Plastics and Rubber Products all declined. [Production Data; Monthly Change Data; Annual Change Data; Graph]

(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released January 17, 2007; next release is February 15) Current and Archived Federal Reserve Statistical Data

Manufacturing Capacity Utilization

U.S. manufacturing industries operated at 80.2 percent of capacity in December 2006, a rate 0.9 percent higher than its 1972-2005 average of 79.5 percent and 0.4 percentage points above capacity utilization in November 2006. In Durable manufacturing, capacity utilization was up 0.6 percentage points from November (revised) to 79.1 percent. While most Durable Manufacturing reported gains, decreases (ranging from 0.3 to 0.6 percentage points) were reported in Nonmetallic Mineral Products, Fabricated Metal products, and Furniture & Related Products. Capacity utilization in Non-durable Manufacturing was up 0.2 percentage point to 81.6 percent from November reflecting sizable gains in Petroleum & Coal Products; Apparel, Leather and Allied Products; and Paper Products. [Production Data; Monthly Change Data; Annual Change Data; Graph]

(Federal Reserve Statistical data from “Industrial Production and Capacity Utilization, G17 (419),” released January 17, 200; next release is February 15) Current and Archived Federal Reserve Statistical Data

Manufacturing Productivity

Manufacturing productivity rose 6.7 percent in the third quarter of 2006, as output increased 5.1 percent and hours of all workers fell 1.6 percent (seasonally adjusted annual rates). This was the largest quarterly gain in productivity since the third quarter of 2003. In the second quarter, productivity rose 2.7 percent, reflecting a 5.1 percent rise in output and a 2.3 percent increase in hours. In durable goods industries, productivity increased 9.0 percent in the third quarter of 2006, as an increase of 5.9 percent in output combined with a 2.9 percent decrease in hours. Productivity grew more slowly in the nondurable goods industries, 3.1 percent, reflecting increases of 3.9 percent in output and 0.8 percent in hours. Strong productivity growth has resulted in the decline in manufacturing employment. [Productivity Data; Quarterly Change Data; Annual Change Data; Graph]

(BLS/DOL Productivity data from “Productivity and Costs, USDL 06-2039,”released December 5, 2006; next release is February 7, 2007) 3rd Quarter 2006 Productivity News Release ; Archived Productivity News Releases

Manufacturing Trade

For the first eleven months of 2006, U.S. manufactured goods exports accounted for 64.2 percent of all U.S. exports of goods and services. During that same period, manufactures exports were 14.4 percent above year ago levels, while imports were up 10.4 percent. The trade deficit in manufactures increased to $563.7 billion (annual rate) for 2006, up from $539.5 billion a year ago.

(Census/BEA/DOC Foreign Trade Statistics data from “U.S. International Trade in Goods and Services, CB07-07, BEA07-01, FT 900,” released January 10, 2006; next release is February 13, 2007) Current Foreign Trade Press Release; Historical Foreign Trade Press Releases

Manufactured Goods Shipments

Shipments of manufactured durable goods in December 2006, up four of the last five months, increased $1.7 billion or 0.8 percent from November to $211.6 billion. This followed a 0.3 percent November increase. Transportation equipment reported the largest gain, $1.9 billion or 3.3 percent to $57.9 billion, up four of the last five months. Shipments also increased in other durable goods industries, such as Primary Metals (2.5%), Electrical Equipment, Appliances, and Components (2.3%) and Fabricated Metal Products (2.2%). [MGS Data; Graph]

(Census Bureau/DOC data from “ Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders December 2006 ( M3-(06)- 12, CB07-017),” released January 26, 2007; next release is February 27) Current Preliminary Data, Current and Archived Durable Goods Press Release

Manufactured Goods Prices

In December 2006, the Producer Price Index (PPI) for the net output of total Manufacturing Industries, edged up 0.3 percent after increasing 0.4 percent in November. The PPI for finished goods, except foods and energy, increased 0.2 percent in December after rising 1.3 percent in the previous month – a net gain of 0.6 percent from October. Similarly, t he finished energy goods price index rose 2.5 percent in December, followed by a 6.1 percent rise in November , a net increase of 3.6 percent from October. Finally, the index for finished consumer goods except foods and energy increased 0.1 percent in December, after gaining 1.1 percent in the preceding month – a net increase of 0.4 percent from October.

In 2006, prices received by the manufacturing sector rose 2.7 percent compared with a 5.4 percent upsurge in 2005. [Price Index Data; Annual Change Data]

(BLS/DOL data from “Producer Price Indexes,” released January 17, 2007; next release is February 16) December 2006 Producer Price Index ; Archived Producer Price Indexes

Institute for Supply Management’s (ISM) Index

In December 2006, the Index of Manufacturing Production was 51.4 percent, 1.9 percentage points higher than the 49.5 percent reported in November. An index above 50 points indicates that the manufacturing economy is generally expanding; below 50 points indicates that it is generally contracting .

Economic activity in the manufacturing sector expanded in December following a one-month decline, while the overall economy grew for the 62nd consecutive month, report the nation's supply executives in the latest Manufacturing ISM Report On Business. The components of the index counter to the overall economy in December figures were New Orders (+3.4%), Production (+3.3%), Prices (-6.0%), Supplier Deliveries (+0.6%), Backlog of Orders (-1.5%), and Inventories (-1.3%).

U.S. Industries Reporting Growth in December 2006

  • Apparel, Leather and Allied Products
  • Printing & Related Support Activities
  • Plastic and Rubber Products
  • Miscellaneous Manufacturing
  • Petroleum & Coal Products
  • Computer & Electronic Products
  • Primary Metals
  • Chemical Products
  • Food, Beverage & Tobacco Products

(Institute for Supply Management data from “December 2006 Manufacturing ISM Report On Business” released January 2, 2007; next release is February 1, 2007) Current ISM Release ; Archived and Current ISM Releases

 

Prepared by: Indumati Jasani
Office of Competition and Economic Analysis
International Trade Administration
U.S. Department of Commerce
(202) 482-3699

 
I want to

The International Trade Administration, U.S. Department of Commerce, manages this global trade site to provide access to ITA information on promoting trade and investment, strengthening the competitiveness of U.S. industry, and ensuring fair trade and compliance with trade laws and agreements. External links to other Internet sites should not be construed as an endorsement of the views or privacy policies contained therein. This site contains PDF documents. A PDF reader is available from Adobe Systems Incorporated.
USA.gov | FOIA | Privacy Policy | Disclaimer | Information Quality Guidelines | Intranet