China recently signed a regional trade agreement – the Regional Comprehensive Economic Partnership (RCEP) – with 14 other Asia-Pacific countries. Touted as the world’s largest regional free trade agreement, it includes countries that make up 30% of the world’s gross domestic product. But it does not include the United States, even though some of the ... READ MORE >
Manufacturing is recovering, but employment isn’t keeping pace
Industrial manufacturing activity is recovering from the economic turmoil induced by the pandemic, according to recent survey data from the Institute for Supply Management, but manufacturing employment has not rebounded at the same pace. After dropping to an 11-year low of 41.5 in April, the ISM’s manufacturing index – a key indicator of industry activity ... READ MORE >
June rebound in industrial production may be thwarted by virus resurgence
As more businesses in the United States reopened, U.S. industrial production and manufacturing output grew by 5.4% and 7.2% respectively in June, according to data released Wednesday by the Federal Reserve. The increase marks the second month in a row of growth for these indicators after a massive decline in April. However, given the resurgence in ... READ MORE >
New April data suggests more pain ahead for U.S. industrial sector
Business activity declined dramatically in New York state in early April, according to the Federal Reserve Bank of New York’s monthly survey of manufacturers there. The general business conditions index in the Fed’s Empire State Manufacturing Survey, released Wednesday, reflected a steep decline in business activity in April to -78.2 compared to -21 in ... READ MORE >
Key manufacturing index shows expansion in January, but may not be sustainable
The Institute for Supply Management on Monday said its purchasing managers' index (PMI) increased to 50.9 in January against an expectation of 48.5, rising above 50 for the first time since July 2019, and from a four-year low of 47.8 in December. An indicator above 50 is considered an expansion in manufacturing activity, while a reading below 50 indicates ... READ MORE >
Equipment as a service – a potential capex solution during a slowdown?
In today’s world of subscription models – streaming videos and music services, household essentials, food preparation – why not apply that concept to industrial machinery? Especially during a manufacturing slowdown when uncertainty is stalling capital investment, the concept – known as equipment as a service -- could be a solution for new projects or could ... READ MORE >