Tag Archives: manufacturing

Durable Goods Orders Disappoint

Durable goods orders fell 1.3% in September, well below expectations. Orders were also revised down slightly for the month of August. The decline in new orders was fairly broad-based, with the exception of metals, electronics and appliances. It is important to note, however, that the drop in orders followed a jump two months ago in [...]

Industrial Production Surges

Industrial production surged 1.0% in September, more than double market expectations, despite a small downward revision to August. Moreover, gains were fairly broad-based with the exception of the auto industry, which took a breather but is expected to pick up again later in the year. Electronics also took a hit,

Durable Goods Better than Headline Suggests

Durable goods orders dropped at an 18.2% pace in August, reversing part but not all of the outsize gains we saw in July. A sharp reversal of the surge in aircraft orders that Boeing saw in the month of July was the reason for the decline. Motor vehicle orders were also down in August

Manufacturing Stays Strong for September

The Purchasing Managers’ Index (PMI) flash reading held steady at 57.9 in September, marking the end of the strongest quarter since the survey began in 2007. Employment was particularly strong in this month’s report, which will help to provide an offset to the weakness we saw in August. An improvement in both domestic economic conditions [...]

Industrial Production Slips in August

Industrial production fell 0.1% in the month of August, as vehicle production plummeted after an unseasonably strong July. Production figures for July were also revised down, which underscores how uneven gains remain in the manufacturing sector. Production for housing-related durables such as furniture, appliances and carpeting also fell after slightly,

Construction and Manufacturing Surprise to Upside

Construction spending jumped 1.8% in July from June, much more than most expected. Gains were greater in the public sector than in the private sector, as highway and street construction picked up to some extent in response to an unusual volume of repairs that needed to be completed in response to last year’s harsh winter. [...]

Surge in Aircraft Mask Underlying Weakness in Orders

Durable goods orders surged more than 20% in July to the highest level since 1992. Much of that rise, however, was due to a surge in new aircraft orders for Boeing; those have long lag times (up to five years to completion) and can be cancelled if economic conditions change. The remainder of the increases [...]

Autos Drive Gains in IP

Industrial production rose 0.4% in July, supported by outsize gains in vehicle production.  Many plants were running in July when retooling typically occurs to either catch up on losses from interruptions during the winter months or ramp up for an expanded number of new model introductions. Unusually harsh winter weather also accelerated the pace at [...]

Durable Goods Orders Rebound Partway

Durable goods orders jumped 0.7% in June on strong gains in machinery and transportation equipment. The increase in transportation equipment was heavily concentrated in defense aircraft and parts, which has long lag times, while orders in the vehicle sector actually fell. The more important capital goods orders excluding defense and aircraft, which track actual business [...]

Tepid Production and Mortgage Figures Reinforce Gradualism

Industrial production rose 0.2% in June and was revised down slightly for the month prior. The bulk of the weakness occurred in consumer goods, which had been extremely strong earlier in the quarter. Hopefully, this weakness is transitory as the auto sector and big-ticket consumer goods are expected to provide a tailwind for the economy [...]