New jobless claims drop to 601K; retail sales rise
The number of newly laid-off Americans filing jobless claims fell more than expected last week and retail sales grew in May for the first time in three months. But a rise in the number of people continuing to receive jobless aid signaled that an economic recovery is still far off. The Labor Department said Thursday that initial claims for unemployment benefits fell last week by 24,000 to a seasonally adjusted 601,000. Retail sales rose for the first time in three months in May, as a rebound in demand at auto dealerships and gas stations helped offset weakness at department stores. The Commerce Department said retail sales increased by 0.5 percent last month, in line with economists' expectations. It was the largest increase since sales rose 1.7 percent in January following six straight declines.
U.S. consumer confidence rose to a nine-month high in June but failed again to surpass its level of September 2008, when the spectacular failure of Lehman Brothers sent the world economy into a tailspin, a survey showed on Friday. The Reuters/University of Michigan Surveys of Consumers said its preliminary index of confidence for June rose to 69.0 from May's 68.7. That was slightly below economists' expectations of 69.5, according to a Reuters poll.
In May 2009, average hourly earnings in manufacturing were $18.08, down 0.39 percent from April 2009’s $18.15 (preliminary), and up 2.44 percent from May 2008’s $17.65.
Hourly compensation in manufacturing grew 13.4 percent during the first quarter of 2009, reflecting a 15.8 percent rise in durable goods industries and a 10.1 percent rise in the nondurable goods industries (seasonally-adjusted annual rates).
Real hourly compensation, which takes into account changes in consumer prices, increased 16.1 percent for all manufacturing workers.
In 2009, hourly compensation of all manufacturing workers grew 8.4 percent, compared to a 4.1 percent increase in 2008. Real hourly compensation in the total manufacturing sector rose 8.7 percent in 2009 after increasing by 0.3 percent in 2008.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0587 First Quarter, Revised,” released June 4, 2009; next release is August 11, 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 May 2009, manufacturing employment fell by 156,000 to 12.0 million from April’s (preliminary) manufacturing employment levels.
In May, durable goods manufacturing lost 131,000 jobs, with decreases in all categories: Transportation Equipment (-35,900) of which Motor vehicles and parts was -29,800, Machinery (-26,400), Fabricated metal products (-18,700), Computer and electronic products (-14,400), Primary metals (-9,800), Furniture and related products (-6,700), Wood products (-6,600), Nonmetallic mineral products (-6,200), Electronical equipment and Appliances (-6,000), and Miscellaneous manufacturing (-1,000).
In May, nondurable goods manufacturing lost 25,000 jobs. Job losses occurred in Plastics and rubber products (-9,800), Paper and paper products (-5,100), Printing and related support activities (-3,600), Chemicals (-2,600), Food manufacturing (-1,500), Beverages and tobacco products (-800), Textile mills (-800), Petroleum and coal products (-600), Leather and allied products (-200), and Textile product mills (-100). However, Apparel reported a gain of 200 jobs.
The manufacturing employment of 12.0 million workers represents 9.1 percent of total non-farm employment.
In April 2009, manufacturing output fell 0.3 percent and was 14.5 percent below its year-earlier level.
The production index for durable goods declined 0.3 percent. The durable manufacturing industries that registered decreases in output of more than 1 percent in April included Furniture and related products (-2.8%), Fabricated metal products (-2.1%), Primary metal (-1.2%), Aerospace and miscellaneous transportation (-1.1%). The industries that registered increases in output of more than 1 percent in April included Nonmetallic mineral products (1.9%), Wood products (1.8%), and Motor vehicles and parts (1.4%).
The production of nondurable goods decreased 0.1 percent. Industries that registered notable decreases in output included Printing and support (-2.4%), and Apparel and leather (-1.4%). However, increased production was registered in Paper (1.2%), Petroleum and coal products (0.8%). Chemical production was unchanged from March. Plastics and rubber products was also unchanged.
The index for other manufacturing industries (non-NAICS) decreased 2.6 percent in April.
In April 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 0.1 percentage points lower than their revised capacity utilization in March 2009.
In durable manufacturing, capacity utilization decreased 0.2 percentage points in April from March (revised) to 59.7 percent. This reflects increases in capacity utilization in Nonmetallic mineral products (1.1 percent), Wood products (1.0 percent), Motor vehicles and parts (0.7 percent) and declines in Aerospace and miscellaneous transportation equipment (-0.9 percent), Electrical equip., appliances and components (-0.3 percent), Furniture and related products (-1.4 percent), Primary metals (-0.5 percent); Computer and Electronic products (-0.5 percent); Fabricated metal products (-1.2 percent); and Machinery (-0.4 percent), among others.
Capacity utilization in non-durable manufacturing in April was unchanged from March. Decreased capacity utilization was registered in Printing and support (-1.2 percent), Apparel and leather (-0.7 percent), and Food and beverage, and tobacco products (-0.2 percent). Increased capacity utilization was registered in Paper (0.9 percent), Petroleum and coal products (0.7 percent), Textile and product mills (0.1 percent), Plastics and rubber products (0.1 percent), and Chemical (0.1 percent).
Productivity decreased at a 2.7 percent annual rate in the manufacturing sector during the first quarter of 2009, reflecting a 21.7 percent decrease in output and a 19.5 percent decrease in hours. These were the largest-ever declines in the output and hours series, which begin with data for the second quarter of 1987. Over the last four quarters, manufacturing productivity fell 3.2 percent, the largest four-quarter decline in the series. This contrasts with the 3.7 percent average annual increase from 2000 to 2007.
In the durable goods manufacturing subsector, output declined 31.0 percent and hours fell 23.0 percent, yielding a productivity decline of 10.4 percent.
In nondurable goods industries, productivity rose 1.9 percent as the decline in output of 11.6 percent was less than the 13.2 percent decline in hours.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0587 First Quarter 2009, Revised,” released June 4, 2009; next release is August 11, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
Year to date April 2009, U.S. manufactured goods exports accounted for 82.2 percent of all U.S. exports of goods, compared with 81.1 percent a year ago. Manufactured goods exports in April were 8.2 percent lower than previous month, while imports were down 2.9 percent. Year to date April 2009’s trade deficit in manufactured goods of 95.2 billion was less compared with $146.5 billion a year ago.
In April 2009, shipments of manufactured durable goods decreased $0.3 billion or 0.2 percent to $174.2 billion, down nine consecutive months. This followed a 1.9 percent March decline. Machinery, down four consecutive months, had the largest decrease, $0.7 billion or 3.1 percent to $23.0 billion.
Shipments decreased in Primary Metal (-3.9 percent), and Fabricated metal products (-1.9 percent). However, shipments increased in Computers and electronic products (2.5 percent), Electrical equipment, appliances and components (1.9 percent), and Transportation equipment (0.6 percent).
In April 2009, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.1.
The index for finished energy goods was down 0.1 percent in April. On the otherhand, the index for gasoline prices increased 2.6 percent, liquefied petroleum 5.0 percent, Home heating oil and distillates 3.8 percent, and No. 2 diesel fuel 17.0 percent. The index for Residential gas declined 6.2 percent in April after declining 2.4 percent in March. The index for residential electric power also declined 0.6 in April.
Institute for Supply Management's (ISM) Index updated
Economic activity in the manufacturing sector failed to grow in May for the 16th consecutive month, while the overall economy grew for the first time following seven months of decline, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
In May 2009, the ISM index (PMI) of manufacturing registered 42.8 percent, 2.7 percentage points higher than the seasonally adjusted 40.1 percent reported in April.
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 May were: New Orders up 3.9 percent to 51.1, Production up 5.6 percent to 46.0, Employment down -0.1 to 34.3, Supplier Deliveries up 4.9 percent to 49.8, and Inventories down 0.7 to 32.9.
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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