Builders in the U.S. broke ground in August on the most houses in nine months, led by a jump in multifamily dwellings that overshadowed a decrease in construction of single-family homes. Housing starts rose 1.5 percent to an annual rate of 598,000, as anticipated, figures from the Commerce Department showed today in Washington. Single-family projects dropped 3 percent, the first decrease since January, while work began on 25 percent more multifamily units, such as apartments.
Forty-two states lost jobs last month, up from 29 in July, with the biggest payroll cuts coming in Texas, Michigan, Georgia and Ohio. The Labor Department says 27 states saw their unemployment rates increase in August, and 14 states and Washington D.C. reported unemployment rates of 10 percent or above. Michigan has the highest jobless rate of 15.2 percent, followed by Nevada at 13.2 percent, Rhode Island at 12.8 percent, and California and Oregon at 12.2 percent each. The jobless rates in California, Nevada and Rhode Island were the highest on records dating to 1976.
Nationwide, the unemployment rate rose to 9.7 percent in August from 9.4 percent in July.
In August 2009, average hourly earnings in manufacturing were $18.22, up 0.22 percent from July 2009’s $18.18 (preliminary), and up 2.64 percent from August 2008’s $17.75.
(BLS/DOL Employment data from “The Employment Situation- August 2009, USDL 09-1067,” released September 4, 2009; next release is October 2, 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 first quarter of 2009, manufacturing profits decreased 18.2 percent, or $27.0 billion, to $121.6 billion from $148.6 billion in the fourth quarter. Compared with first quarter profits of 2008, manufacturing profits were down $66.0 billion in the first quarter of 2009.
First quarter 2009 profits estimates for all non-financial industries (manufacturing being a subcategory) increased 2.9 percent from the fourth quarter of 2008 to $758.0 billion.
NOTE: This update reflects “the comprehensive (or benchmark) revision of the national income and product accounts (NIPAs). More information on the revision is available on BEA’s Web site at www.bea.gov/national/an1.htm, including links to an article in the March 2009 issue of the Survey of Current Business that discussed the changes in definitions and presentation that have been implemented in the revision and to an article in the May Survey that described the changes in statistical methods.”
In August, 2009, manufacturing employment continued to trend downward, with a decline of 63,000.
In August, durable goods manufacturing lost 51,000 jobs, with decreases in all categories: Transportation equipment (-16,000), Computer and electronic products1 (-8,300), Fabricated metal products (-8,200), Machinery (-4,600), Wood products (-3,200), Furniture and related products (-3,200), Nonmetallic mineral products (-2,700), Miscellaneous manufacturing (-2,300), Electrical equipment and appliances (-1,500), and Primary metals (-1,400).
In August, 2009, nondurable goods manufacturing lost 12,000 jobs. Job losses occurred in most categories: Printing and related support activities (-4,900), Chemicals (-3,300), Paper and paper products (-1,800), Apparel (-1,600), Plastics and rubber products (-1,400), Leather and allied products (-1,200), Textile mills (-600), and Textile product mills (-300). However an increase in employment was registered in Food manufacturing (2,500), Beverages and tobacco products (700), and Petroleum and coal products (100).
The manufacturing employment of 11.8 million workers represents 9.0 percent of total non-farm employment.
(BLS/DOL Employment data from “The Employment Situation: August 2009, USDL 09-1067,” released September 4, 2009; next release is October 2, 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 July, up two consecutive months, increased $3.5 billion or 2.0 percent to $173.1 billion. This followed a 0.7 percent June increase. Computers and electronic products, up three of the last four months, had the largest increase, $2.1 billion or 7.4 percent to $29.8 billion.
Shipments also increased from June to July in Primary metals (6.3 percent), Electrical equipment, appliances, and components (1.7 percent), Transportation equipment (1.4 percent), Fabricated metal products (0.6 percent). However, shipments decreased in Machinery (-3.7 percent).
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).
Economic activity in the manufacturing sector expanded in August, following 18 consecutive months of contraction, and the overall economy grew for the fourth consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
The PMI registered 52.9 percent, which is 4 percentage points higher than the 48.9 percent reported in July. This is the highest reading since June 2007, when the index also registered 52.9 percent. 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 August were: New Orders up 9.6 points to 64.9, Production up 4.0 points to 61.9, Employment up 0.8 points to 46.4, Supplier Deliveries up 5.1 points to 57.1, and Inventories up 0.9 points to 34.4.
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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