Nissan Motors CEO Carlos Ghosn said the company has the technology and the capability to produce cars that will not only be zero emissions, but also also cost-friendly by 2010. “Somebody’s got to bring zero emission cars into the market—we think we can do it,” said the CEO in an interview with CNBC. “We have the batteries and we are at the point where in 2010, cars that we will be putting in the U.S. market will be totally attractive to the consumers.” Ghosn said electric cars are only marketable if priced correctly and that each country needs different incentives from their governments to influence consumers into green-auto buying habits.
A flurry of better-than-expected bank earnings reports this week, coupled with some tentatively encouraging economic data, suggest the economy and the financial system might not be quite as sick as many had believed.
"We're beginning to get a little visibility on how banged up corporate America has been," Mark Vitner, senior economist at Wachovia Corp., said of Friday's earnings reports from Citigroup Inc. and General Electric Co.
In March 2009, average hourly earnings in manufacturing were $18.07, unchanged from February 2009 (preliminary), and up 2.56 percent from March 2008’s $17.62.
The average hourly compensation of all manufacturing workers rose 10.1 percent during the fourth quarter of 2008 (from the previous quarter, at an annual rate), reflecting increases in hourly compensation of 10.1 percent in durable goods subsector and 10.1 percent gain in nondurable goods manufacturing.
When the 9.2 percent decrease in consumer prices is taken into account, real hourly compensation in total manufacturing workers advanced 21.2 percent in the fourth quarter, which was the largest increase in the series.
In 2008, hourly compensation of all manufacturing workers grew 4.0 percent, compared to a 3.6 percent increase in the fourth quarter of 2007. Real hourly compensation in the total manufacturing sector rose 0.2 percent in 2008 after increasing by 0.7 percent in 2007.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0116 March 5, 2009,” released March 5, 2009; next release is May 7, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
In the fourth quarter of 2008, manufacturing profits decreased 15.2 percent, or $41.4 billion (at an annual rate), to $231.2 billion from $272.6 billion in the third quarter. Compared with fourth quarter profits of 2007, manufacturing profits were down $60.9 billion in the fourth quarter of 2008. Manufacturing profits in 2008 were $76.8 billion less than manufacturing profits in 2007.
Fourth quarter 2008 profits estimates for all non-financial industries (manufacturing being a subcategory) decreased 9.8 percent from the third quarter of 2008 to $825.8 billion.
In March 2009, manufacturing employment fell by 161,000 to 12.3 million from February’s (preliminary) manufacturing employment levels.
In March, durable goods manufacturing lost 125,000 jobs, with decreases in all categories: Fabricated metal products (-27,700), Machinery (-27,000), Primary metals (-8,500), Wood products (-200), Furniture and related products (-10,200), Computer and electronic products (-5,300), Nonmetallic mineral products (-9,300), Electronics equipment and Appliances (-9,000), Transportation Equipment (-25,900) of which Motor vehicles and parts (-17,500), and Miscellaneous manufacturing (-2,100).
In March, nondurable goods manufacturing lost 36,000 jobs. Job losses occurred in almost all categories. Most prominent are Plastics and rubber products (-9,800), Printing and related support activities (-7,900), and Paper and paper products (-3,400), Food manufacturing (-2,800), and Textile mills (-2,000). However, Beverages and tobacco products reported a gain of 1,300 jobs.
The manufacturing employment of 12.3 million workers represents 9.3 percent of total non-farm employment.
In March 2009, manufacturing output fell 1.7 percent and was 15.0 percent below its year-earlier level.
The production index for durable goods declined 2.4 percent. The output of motor vehicles and parts slightly expanded 1.5 percent, and the output of aerospace and miscellaneous transportation decreased 0.5 percent. All of the other major indexes in this category fell sharply.
The production of nondurable goods decreased 1.0 percent. The output of petroleum and coal products decreased 1.1 percent following a 0.7 increase the previous month; the production of food, beverage, and tobacco products decreased .5 percent in March; and Chemical production decreased 0.9 percent. Industries with notable declines included Textile and product mills (-2.9 percent), Paper (-2.3 percent), Plastics and rubber products (-2.2 percent), and Printing and support (-0.9 percent). However, increased production was registered in Apparel and leather (0.8 percent).
The index for other manufacturing industries (non-NAICS) decreased 2.9 percent in March.
In March 2009, manufacturing industries (NAICS based) operated at 65.8 percent of capacity, 13.6 percentage points below their 1972-2008 average of 79.4 percent and 1.1 percentage points lower than their revised capacity utilization in February 2009.
In durable manufacturing, capacity utilization decreased 1.4 percentage points in March from February (revised) to 60.0 percent. This reflects increases in capacity utilization in Motor vehicles and parts (0.8 percent) and declines in Aerospace and miscellaneous transportation equipment (-0.5 percent); Electrical equip., appliances and components (-2.6 percent); Furniture and related products (-0.8 percent); Primary metals (-1.9 percent); Fabricated metal products (-2.6 percent); and Machinery (-2.6 percent), among others.
Capacity utilization in non-durable manufacturing in March moved down 0.7 percentage points from February 2009 (revised) to 72.1 percent. Decreased capacity utilization was registered in Textile and product mills (-1.4 percent), Plastics and rubber products (-1.3 percent); Printing and support (-0.3 percent), Paper (-1.5 percent), and Petroleum and coal products (-0.9 percent). Increased capacity utilization was registered in Apparel and leather (0.8 percent).
Manufacturing productivity decreased 4.0 percent (seasonally adjusted annual rate) in the fourth quarter of 2008, as output dropped 17.7 percent and hours of all persons declined 14.2 percent. The decreases in hours and output were the largest for these series, since the second quarter of 1987. Manufacturing productivity had grown at a 3.7 percent average annual rate from 2000 to 2007 and 1.3 percent increase in 2008.
In the durable goods manufacturing sector, productivity dropped 14.8 percent in the fourth quarter of 2008, as output fell 26.9 percent and hours declined 14.2 percent. These were the largest decreases in productivity, output, and hours for the entire series dating back to second-quarter 1987.
In the nondurable goods sector, productivity rose 7.6 percent in the fourth quarter as hours fell faster than output; output declined 7.7 percent and hours dropped 14.2 percent.
At present the recession and the trend of strong productivity growth are contributing to the decline in manufacturing employment.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0116 March 5, 2009,” released March 5, 2009; next release is May 7, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
Year to date February 2009, U.S. manufactured goods exports accounted for 81.8 percent of all U.S. exports of goods, compared with 81.2 percent a year ago. During that same period, manufactured goods exports were 22.0 percent below year ago levels, while imports were down 25.0 percent. Year to date February 2009’s trade deficit in manufactured goods of $49.0 billion was less compared with $72.0 billion a year ago.
In February 2009, shipments of manufactured durable goods decreased $0.9 billion or 0.5 percent to $179.1 billion, down seven consecutive months. This followed a 5.2 percent January decline. Computers and electronic products, down three of the last four months, had the largest decrease, $0.6 billion or 2.0 percent to $27.9 billion.
Shipments decreased in almost all the major manufactured durable goods categories:
Primary Metals (-1.4 percent), Transportation equipment (-0.8 percent), Fabricated metal products (-0.5 percent), Machinery (-0.02 percent),
However, one industry, Electrical equipment, appliances and components, reported an increase in shipments of 0.5 percent.
In March 2009, the Producer Price Index (PPI) for finished goods, except foods and energy, was unchanged after increasing by 0.2 percent in February.
The index for finished energy goods was down 5.5 percent in March after increasing 1.3 percent a month earlier. The index for gasoline prices fell 13.1 percent in March after rising 8.7 percent a month earlier. The indexes for liquefied petroleum gas, home heating oil, diesel fuel, kerosene, and lubricating and similar oils decreased more than they had in the preceding month. Decline in the index for residential natural gas slowed to 2.4 percent from 3.6 percent in February. The index for residential electric power also turned down following an increase in February.
“Economic activity in the manufacturing sector failed to grow in March for the 14th consecutive month, and the overall economy contracted for the sixth consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.”
In March 2009, the ISM index (PMI) of manufacturing registered 36.3 percent, 0.5 percentage points higher than the seasonally adjusted 35.8 percent reported in February.
While this is a month-over-month improvement, it is still a sign of continuing weakness in the sector. An index above 50 percent indicates that the manufacturing economy is generally expanding; an index below 50 percent indicates that it is generally contracting.
The percentage-point changes in the components of the PMI in March were: New Orders up 8.1 percent to 41.2, Production was up 0.1 percent to 36.4, Employment up 2.0 to 28.1, Supplier Deliveries down -3.1 percent to 43.6, and Inventories down 4.8 to 32.2.
Prepared by
Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
(202) 482-2460-4691
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