Ford Increases European Market Share on Fiesta Sales:
Ford Motor Company, the second-biggest U.S. automaker, boosted its share of European sales in November 2008, after introducing a new version of the Fiesta small car. The new Fiesta is the first in a line of vehicles that Chief Executive Officer Alan Mulally plans to sell worldwide. The Fiesta will be introduced in China in 2009 and the U.S. in 2010.
The increase by 0.5 percentage points to 8.8 percent came as deliveries in the company’s top 19 European countries tumbled 21 percent to 95,700 vehicles. The new Fiesta was the company’s second-biggest seller last month, with 18,100 deliveries, Ford said today in a statement. The Focus was the first, with 22,300. “We are proud that in such a difficult economic environment we could further increase our market share,” Ingvar Sviggum, vice president of Cologne (Germany-based Ford of Europe), said in the statement.
In November 2008, average hourly earnings in manufacturing were $17.92, up 0.3 percent from October 2008’s $17.86 (revised), and up 3.0 percent from $17.40 in November 2007.
(BLS/DOL Employment data from “The Employment Situation: November 2008, USDL 08-1774,” released December 5, 2008; next release is January 9, 2009)
http://www.bls.gov/news.release/pdf/empsit.pdf
The average hourly compensation of all manufacturing workers rose 4.7 percent during the third quarter of 2008 (from the previous quarter, at an annual rate), reflecting increases in hourly compensation of 6.1 percent in durable goods subsector and 2.6 percent gain in nondurable goods manufacturing.
Real hourly compensation for all manufacturing workers declined 1.9 percent in the third quarter of 2008, following declines of 0.5 percent in the first quarter and 2.7 percent in the second quarters of 2008.
In 2007, hourly compensation of all manufacturing workers grew 3.5 percent, compared to a 4.1 percent increase in 2006. Real hourly compensation in the total manufacturing sector rose 0.7 percent in 2007 after increasing by 0.8 percent in 2006.
In the second quarter of 2008, manufacturing profits decreased 10.6 percent, or $25.6 billion (at an annual rate), to $214.9 billion from $240.5 billion in the first quarter. Compared with second quarter profits of 2007, manufacturing profits were down $135.9 billion in the second quarter of 2008. Manufacturing profits in 2007 were $12.3 billion above manufacturing profits in 2006.
Third quarter 2008 profits estimates for all non-financial industries (manufacturing being a subcategory) increased 8.6 percent from the second quarter of 2008 to $911.6 billion.
In November 2008, manufacturing employment decreased 85,000 to 13.2 million from October’s (revised) manufacturing employment levels with widespread job losses occurring among the component industries.
Within durable goods manufacturing, job losses occurred in November in Fabricated metal products (-15,300), Machinery (-11,000), wood products (-8,700), Furniture and related products (-6,600), Primary metals (-6,800), and Computer and electronic products (-7,000). Employment in Transportation equipment edged up, as a return of 27,000 aerospace workers from strike more than offset a job loss of 13,100 in Motor vehicle and parts.
Among the nondurable goods component, the job losses occurred in Plastics and rubber products (-12,400), Printing and related support activities (-5,300), Paper and paper products (-2,000), and Textile mills (-4,700), among others. Food manufacturing added 4,100 jobs over the month.
The manufacturing employment of 13.2 million workers represents 9.7 percent of total non-farm employment.
(BLS/DOL Employment data from “The Employment Situation: November 2008, USDL 08-1774,” released December 5, 2008; next release is January 9, 2009)
http://www.bls.gov/news.release/pdf/empsit.pdf
Manufacturing production rose 0.6 percent in October after a decline of 3.7 percent in September. Excluding the effects of the hurricanes and the aircraft strike, factory production is estimated to have declined about 1 percent in both months.
The output of durable goods industries decreased 1.8 percent, with declines widespread among its components. In addition to a particularly large drop in Primary metals (-4.8 percent), which was due to lower production of iron and steel, decreases also occurred in most other durable goods industries. Only the index for Electrical equipment, appliances, and components moved up (0.6 percent).
The production of nondurable goods rose 3.1 percent after a decline of 4.5 percent in September. The results for its major components were mixed in October. The output of Petroleum and coal products jumped (9.9 percent), as refinery output recovered from the post-hurricane levels. Gains were also recorded in Food, beverage, and tobacco products (0.6 percent), and in Chemicals (5.1 percent). However, the indexes for Textile and product mills (-0.6 percent), Apparel and leather (-1.8 percent), Paper (-0.4 percent), Printing (-0.5 percent), and Plastics and rubber products (-2.1 percent), all declined.
The index for other manufacturing industries (non-NAICS), which consist of publishing and logging, edged down 0.4 percent in October.
In October 2008, manufacturing industries (NAICS based) operated at 73.8 percent of capacity, 5.7 percentage points below their 1972-2007 average of 79.5 percent and 0.4 percentage points higher than their revised capacity utilization in September 2008.
In durable manufacturing, capacity utilization decreased 1.5 percentage points in October from September (revised) to 70.3 percent. Capacity utilization declined in Primary metals (-3.8 percent); Wood products (-2.6 percent); Motor vehicles and parts (-2.2 percent); Aerospace and miscellaneous transportation equipment (-2.0 percent); Furniture and related products (-1.9 percent); Machinery (-1.3 percent); Nonmetallic mineral products (-0.5 percent); Computer and electronic products (-1.0 percent), among others. Capacity utilization increased in Electrical equipment, appliances, and components (0.3 percent).
Capacity utilization in non-durable manufacturing in October rose 2.3 percentage points from September 2008 (revised) to 77.6 percent. Increased capacity utilization was registered in Petroleum and coal products (8.1 percent); Chemical (3.5 percent); and Food, beverage, and tobacco products (0.5 percent). These gains outweighed losses in capacity utilization in Apparel and leather (-1.1 percent); Paper and products (-0.3 percent); Printing and support (-0.5 percent); Textile and product mills (-0.2 percent); and Plastics and rubber products (-1.7 percent).
Manufacturing productivity fell 2.7 percent (seasonally adjusted annual rate) in the third quarter of 2008, as output decreased 7.8 percent and hours of all persons declined 5.3 percent. This is the largest quarterly drop in productivity in the entire series, since the second quarter of 1987. The decline in output was the largest since the first quarter of 1991, when output fell 8.0 percent.
The third-quarter decline in manufacturing productivity was driven by a 10.2 percent decline in nondurable goods productivity, the largest in the series. Nondurable goods output fell by 9.8 percent, while hours in nondurable manufacturing rose 0.4 percent.
In durable goods industries, output per hour grew 2.9 percent in the third quarter of 2008 from the previous quarter, as output and hours decreased by 5.8 percent and 8.4 percent, respectively.
In total manufacturing, productivity increased 0.6 percent from the third quarter of 2007 to the third quarter of 2008.
The trend of strong productivity growth has resulted in the decline in manufacturing employment.
Year to date October 2008, U.S. manufactured goods exports accounted for 61.2 percent of all U.S. exports of goods and services, compared with 62.4 percent a year ago. During that same period, manufactured goods exports were up 13.6 percent above year ago levels, while imports were up 4.7 percent. The trade deficit in manufactures improved to $470.0 billion (annual basis) for 2008, down from $535.4 billion a year ago.
In October 2008, shipments of manufactured durable goods decreased $5.0 billion or 2.4 percent to $202.9 billion, down three consecutive months. This followed a 0.2 percent September decline.
Transportation equipment had the largest decrease, down $2.4 billion or 4.6 percent, to $48.3 billion. Shipments also decreased in Primary metals (-8.4 percent); Machinery (-3.4 percent); Electrical equipment, appliances and components (-1.0 percent); and Fabricated metal products (-1.0 percent). Shipments, however, increased in Computer and electronic products (3.2 percent).
(Census Bureau/DOC data from “Manufacturers’ Shipments, Inventories and Orders (M3-1 (08)-10, CB08-172),” released November 26, 2008, 2008; next release is December 24, 2008) http://www.census.gov/indicator/www/m3/adv/pdf/durgd.pdf
In October 2008, the Producer Price Index (PPI) for finished goods, except foods and energy, rose 0.4 percent, after increasing by the same percent in September.
The index for finished energy goods moved down 12.8 percent in October following a 2.9-percent decline in September. Gasoline prices dropped 24.9 percent after falling 0.5 percent a month earlier. The indexes for liquefied petroleum gas, diesel fuel, and residential electric power also decreased more than in the prior month.
By contrast, partially offsetting the slowing declines in finished energy goods prices, the index for residential natural gas moved down 5.9 percent compared with an 8.2 percent decline in September. Prices for home heating oil also fell less than in the previous month.
The index for finished consumer foods edged down 0.2 percent in October after rising 0.2 percent in September.
Institute for Supply Management's (ISM) Index updated
In November 2008, the ISM index of manufacturing registered 36.2 percent, 2.7 percentage points lower than the 38.9 percent reported in October.
When comparing November to October, the PMI indicates a continuing rapid rate of contraction in manufacturing. An index above 50 percent indicates that the manufacturing economy is generally expanding; an index below 50 percent indicates that it is generally contracting.
“New orders have contracted for 12 consecutive months, and are at the lowest level since June 1980 when the index registered 24.2 percent. Order backlogs have fallen to the lowest level since ISM began tracking the Backlog of Orders Index in January 1993. The Prices Index at 25.5 percent indicates that commodity prices continue to decline at a rapid rate,” says Norbert J. Ore, C.P.M., chair of the manufacturing business survey committee.
Economic activity in the manufacturing sector failed to grow in November for the fourth consecutive month, while the overall economy contracted for the second consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.
Prepared by
Office of Competition and Economic Analysis
Manufacturing and Services
International Trade Administration
U.S. Department of Commerce
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