U.S. job losses accelerated last month and the unemployment rate climbed to the highest level since 1983, stark reminders of how the worst financial crisis in a generation may undermine consumer spending and economic growth in the months ahead. The figures from today’s Labor Department report sent stocks tumbling for a fourth day and yields on benchmark 10-year notes to the lowest level since May. The report underscores forecasts for the Federal Reserve to keep its benchmark interest rate near zero through next year, and may spark calls for stronger government efforts to shore up jobs.
U.S. auto sales fell sharply in September, enduring a tough hangover from this summer's Cash for Clunkers buying spree. General Motors Co. and Chrysler Group LLC posted the biggest slowdowns during the month, while Hyundai was the sole winner among big carmakers, reporting a 27 percent rise in sales from a year earlier. The September slump for car and truck makers follows a heady summer. Automakers got a big lift in July and August from clunkers, which spurred sales of nearly 700,000 new vehicles. The government program's big discounts lured in many customers who otherwise would have waited until later in the year to walk into dealerships. Now automakers are starting to feel the effect. GM's sales plunged 45 percent to 155,679 vehicles in September, compared with a year earlier. Chrysler sold only 62,197 vehicles last month, down 42 percent.
In September 2009, average hourly earnings in manufacturing were $18.34, up 0.71 percent from August 2009’s $18.21 (preliminary), and up 2.80 percent from September 2008’s $17.84.
(BLS/DOL Employment data from “The Employment Situation- September 2009, USDL 09-1180,” released October 2, 2009; next release is November 6, 2009)
http://www.bls.gov/news.release/pdf/empsit.pdf
Manufacturing Wage Rates (Quarterly, Yearly)
During the second quarter of 2009, hourly compensation grew 5.1 percent in total manufacturing, 7.9 percent in durable manufacturing and 1.5 percent in nondurable manufacturing. As revised, manufacturing hourly compensation decreased 0.4 percent in the first quarter.
When consumer prices were taken into account, real hourly compensation of all manufacturing workers rose 3.7 percent in the second quarter, and 2.0 percent in the first quarter of 2009.
In the second quarter of 2009, hourly compensation of all manufacturing workers grew 5.2 percent (annual rate from the same quarter a year ago), compared to a 2.3 percent increase during the second quarter of 2008. Real hourly compensation in the total manufacturing sector rose 6.2 percent in the second quarter of 2009 (annual rate from the same quarter a year ago), compared to 1.9 percent decrease in the second quarter of 2008.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-1066 Second Quarter, Revised,” released September 2, 2009; next release is November 5, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
In the second quarter of 2009, manufacturing profits increased 8.8 percent, or $10.7 billion, to $132.3 billion from $121.6 billion in the first quarter. Compared with second quarter profits of 2008, manufacturing profits were down $27.8 billion in the second quarter of 2009.
Second quarter 2009 profits estimates for all non-financial industries (manufacturing being a subcategory) increased 2.0 percent from the first quarter of 2009 to $773.3 billion.
In September, 2009, manufacturing employment continued to trend downward, with a decline of 51,000.
In September, durable goods manufacturing lost 43,000 jobs from August, with decreases in most categories: Fabricated metal products (-9,900), Machinery (-8,900), Computer and electronic products (-7,400), Furniture and related products (-4,700), Transportation equipment (-3,700), Miscellaneous manufacturing (-3,100), Primary metals (-2,800), Nonmetallic mineral products (-1,900), Wood products (-1,700). However job gains occurred in Electrical equipment and appliances (1,000).
In September, 2009, nondurable goods manufacturing lost 8,000 jobs. Job losses occurred in most categories: Printing and related support activities (-2,100), Chemicals (-1,600), Apparel (-1,200), Plastics and rubber products (-1,100), Textile mills (-700), Paper and paper products (-400), Leather and allied products (-300), Beverages and tobacco products (-100). However, job gains occurred in Petroleum and coal products (300) and Textile product mills (400).
The manufacturing employment of 11.7 million workers represents 8.9 percent of total non-farm employment.
(BLS/DOL Employment data from “The Employment Situation: September 2009, USDL 09-1180,” released October 2, 2009; next release is November 6, 2009)
http://www.bls.gov/news.release/pdf/empsit.pdf
In August 2009, manufacturing output was up 0.6 percent and was 12.2 percent below its year-earlier level.
The production index for durable goods was up 0.5 percent. The durable manufacturing industries that registered increased in output included Motor vehicles and parts (5.5 percent),Primary metal (0.9 percent),Miscellaneous (0.9 percent),Machinery (0.8 percent), Electrical equip., appliances, and components (0.6 percent), and Fabricated metal products (0.2 percent). The durable manufacturing industries that registered decreases in output included Furniture and related products (-2 percent),Nonmetallic mineral products (-1.9 percent),Wood products (-0.8 percent), Computer and electronic products (-0.8 percent), and Aerospace and miscellaneous transportation equipment (-0.2 percent).
The production of nondurable goods increased 0.7 percent. Industries that registered increases included Food, beverage, and tobacco products (1.6 percent), Apparel and leather (0.8 percent), Chemical (0.7 percent), Textile and product mills (0.4 percent), and Plastics and rubber products (0.1 percent). Industries that registered decreases included Petroleum and coal products (-0.5 percent), Paper (-0.2 percent), and Printing and support (-0.2 percent).
The index for other manufacturing industries (non-NAICS) increased 0.9 percent.
In August 2009, manufacturing industries (NAICS based) operated at 66.7 percent of capacity, 12.7 percentage points below their 1972-2008 average of 79.4 percent and 0.5 percentage points higher than their revised capacity utilization in July 2009.
In durable manufacturing, capacity utilization increased 0.4 percentage points in August from July (revised) to 60.1 percent. Increase capacity utilization was registered in Motor vehicles and parts (2.6 points), Miscellaneous (0.7 points), Machinery (0.6 points), Primary metal (0.5 points), Electrical equip., appliances, and components (0.5 points), and Fabricated metal products (0.2 points). Decreased capacity utilization was registered in Nonmetallic mineral products (-1 points), Furniture and related products (-0.9 points), Computer and electronic products (-0.8 points), Wood products (-0.3 points), and Aerospace and miscellaneous transportation equipment (-0.1 points).
Capacity utilization in non-durable manufacturing in August increased 0.7 percentage points from July (revised) to 73.9 percent. Increased capacity utilization was registered in Food, beverage, and tobacco products (1.3 points), Apparel and leather (0.8 points), Chemical (0.7 points), Textile and product mills (0.6 points), Printing and support (0.3 points), and Plastics and rubber products (0.2 points). Decreased capacity utilization was registered in Petroleum and coal products (-0.3 points), and Paper (-0.1 points).
Manufacturing sector productivity grew 4.9 percent in the second quarter of 2009, as output fell 9.8 percent and hours worked decreased 14.0 percent; declines in output and hours were much larger in durable goods industries than in nondurable goods industries. The productivity gain in the manufacturing sector was the largest since the first quarter of 2005.
In durable goods industries, productivity rose 3.1 percent in the second quarter of 2009, as output fell 16.4 percent and hours fell 18.9 percent.
In nondurable goods industries, productivity grew 2.2 percent in the second quarter, reflecting declines in output and hours of 3.2 percent and 5.3 percent, respectively.
(BLS/DOL Productivity data from “Productivity and Costs, USDL 09-0966 Second Quarter 2009, Revised,” released September 2, 2009; next release is November 5, 2009)
http://www.bls.gov/news.release/pdf/prod2.pdf
Year to date July 2009, U.S. manufactured goods exports accounted for 81.9 percent of all U.S. exports of goods, compared with 80.4 percent a year ago. Manufactured goods exports in July were 2.3 percent lower than previous month, while imports were up 7.4 percent. Year to date July 2009’s trade deficit in manufactured goods of $170.0 billion was $91.4 billion less when compared with $261.4 billion a year ago.
Shipments of manufactured durable goods in August, down following two consecutive monthly increases, decreased $2.4 billion or 1.4 percent to $171.3 billion. This followed a 2.2 percent July increase.
In August, shipments increased in Primary metals (1.6 percent over July). However, shipments decreased in Electrical equipment, appliances, and components (-3.4 percent), Computers and electronic products (-2.6 percent), Transportation equipment (-2.0 percent), Machinery (-1.4 percent). Shipments for Fabricated metal products remained the same in August.
In August 2009, the Producer Price Index (PPI) for finished goods, except foods and energy, increased by 0.2 percent.
The index for finished energy goods was up 8.0 percent.
• Increase of price was registered in Gasoline price (+23 percent), Home heating oil and distillates (+21.3 percent), No. 2 diesel fuel (+15.9 percent), Liquefied petroleum gas (+12.4 percent), and Residential electric power (+0.1 percent). However a decrease of price was registered in Residential gas (-0.9 percent).
Institute for Supply Management's (ISM) Index updated
Economic activity in the manufacturing sector expanded in September for the second consecutive month, and the overall economy grew for the fifth consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
The recovery in manufacturing continues as the PMI registered 52.6 percent in September, which is 0.3 percentage point lower than the 52.9 percent reported in August, and the second month of expansion following 18 months of decline. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
The percentage-point changes in the components of the PMI in September were: New Orders down 4.1 points to 60.8, Production down 6.2 points to 55.7, Employment down 0.2 points to 46.2, Supplier Deliveries up 0.9 points to 58.0, and Inventories up 8.1 points to 42.5.
U.S. Industries Reporting Growth in September 2009
Prepared by
Office of Trade Industry Information
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
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