Tag Archives: manufacturing

Durable Goods Orders Decline

Durable goods orders unexpectedly dropped 3.4% in December following data revised downward for November; that marks the fourth decline in five months. Headline data were weighed down again by transportation equipment, which has been struggling in recent months.  Even the new orders ex-transportation show a decline of 0.8%. Looking at core capital goods (the best indicator [...]

Industrial Production Better than Headline

Industrial production fell 0.1% in December after surging 1.3% the month prior. Moreover, the fall in production was due to a drop in utilities. We also saw some declines in vehicle production, representing a need to liquidate inventories. Manufacturing, however, still managed to increase

Mixed Data on Construction and Manufacturing

Construction spending fell 0.3% in November after surging a revised 1.2% in October. A sharp drop in public outlays, which led October gains, accounted for much of the weakness. Residential construction continued to post gains, but off of a low base. Single-family home construction,

Cheer and Chill in November Data

Real GDP was revised up to a whopping 5.0% rate of growth in the third quarter from a 3.9% estimate previously, The revision is unusually large for a third cut of the data. Moreover, revisions were up for all the right reasons, notably stronger domestic demand. We also saw an even stronger surge

Industrial Production Rebounds

Industrial production rebounded 1.3% in the month of November and was revised up for the month of October, when weakness in the mining and utilities sector took a toll on overall gains. Upward revisions were made back to June, which helps explain some of the buildup in inventories that we saw in the third quarter. [...]

Manufacturing Data Mixed

The Purchasing Managers Index (PMI) flash manufacturing index slowed in November with a worrisome shortfall in both new orders and actual manufacturing activity. The Institute for Supply Management (ISM) index for manufacturing activity, however, held up somewhat better with gains in new orders and production offsetting some moderation in hiring.

Small Decline in Industrial Production Does not Derail Recovery

Industrial production slipped by 0.1% in October, mostly because of declines in mining and utilities output. After the strong gains in September, today’s decline does not come as a complete surprise because many expected a temporary payback; it is a partial disappointment. Compared to one year ago, manufacturing output grew by a solid 3.7%, a [...]

Jobs Data Better than Headline Suggests

Payroll employment increased 214,000 in October with upward revisions for the previous months of 31,000. Moreover, we have seen upward revisions consistently, which means momentum is moving to the upside. Some of the largest gains occurred in low-wage food services and drinking establishments. Some of that increase in employment reflects a move by employers to [...]

Construction Disappoints, Manufacturing Improves

Construction spending dropped 0.4% in September, after falling a revised 0.5% in August. The weakness in August was less than initially reported but the data were still a disappointment. Losses were concentrated in public sector construction. The private sector also saw some weakness, however, particularly in nonresidential construction. Gains in lodging, food, drinking establishments and [...]

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 [...]