Tag Archives: manufacturing

Growth in 2Q Revised Much Higher

The economy expanded at a revised 3.7% pace in the second quarter, almost 1.5% stronger than initial estimates for the period. The changes were driven by a strong upward revision to business investment. Commercial construction activity was particularly strong, while the contraction in equipment spending is now significantly less than initially reported.

Durable Goods Surprise to the Upside

Durable goods orders surged a more-than-expected 2% in July and were revised up to show a whopping 4.1% gain in June. More importantly, July’s gains occurred outside of the highly volatile aircraft sector; we saw increases in everything from machinery to vehicles and communications equipment. The increase in machinery is encouraging as it appears to [...]

Fed Holds Cards Close to Vest

The Federal Open Market Committee (FOMC) minutes show that the Federal Reserve continued to edge toward liftoff, but members were not there yet last month. The divide between those on the FOMC who would like to raise rates in September and those who would prefer to wait is widening.

Construction Data Improves with Detail

Construction spending rose an almost imperceptible 0.1% in June, with a drop in the private sector offsetting ongoing gains in the public sector. Revisions to previous months were to the upside, however, suggesting that the improving trend in construction that we saw with last month’s release is still intact.

Revisions Smooth Path of Growth

The overall economy expanded at a 2.3% pace in the second quarter after rising at an upwardly revised 0.6% pace in the first quarter. Benchmark revisions, which incorporate new data and attempt to deal with the first quarter seasonal problems, helped to smooth the path of growth in recent years.

Aircraft Orders Buoy Durable Goods

Durable goods orders rose 3.4% in June after contracting a more-than-previously-reported 2.1% in May. A 66% surge in the highly volatile aircraft sector accounted for much of the gain.

Production Still Tepid

The index for industrial production rose 0.3% in June, slightly better than expected. Much of the increase, however, was concentrated in the utilities and mining sectors as opposed to manufacturing,

Dismal Durable Goods Orders

Durable goods orders fell 1.8% in May and were revised down for the month of April. Much of the drop was driven by a sharp drop in aircraft orders, which are extremely volatile. The remainder, however, was a disappointment. The vehicle sector, which had been one of the bright spots for factory orders, flatlined in [...]

Industrial Production is Struggling

Industrial production declined 0.2% in May after falling more than initially reported in April. Revisions earlier in the year had been to the upside. Oil and gas extraction, in particular, did not collapse as rapidly as we thought. Overall production activity is about even with where we were in January, which isn’t exactly a sign [...]

GDP Slips into the Red

Real GDP fell by 0.7% in the first quarter, almost one percent lower than initial estimates. The bulk of the slowdown may be attributed to a smaller-than-initially-reported buildup in inventories, slower consumer spending and stronger imports. The only upside revision was to residential investment, which reflects the glimmer of light we have seen in housing [...]