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 >
Industrials
Manufacturers of all stripes dominate the middle market, making everything from scanners to seatbelts. They create inputs for larger, well-known brands, producing colorants in foods, materials for construction, components for motorcycles and much more.
U.S. industrial production rose 1.1% in October
The Federal Reserve on Tuesday said its index of industrial production, a measure of output at factories, mines and utilities, rose last month as output continued to recover from the depths of the spring. Total production rose 1.1% in October, slightly above economists' consensus of 1.0%, following a 0.4% downwardly revised September reading. Even with ... READ MORE >
CHART OF THE DAY: Darkness before the dawn in global auto manufacturing
Global auto production has declined 32% on a year-ago basis largely because of the combined impact of the global trade war and pandemic. But as dour as that reality is, there are signs that the disruptions to global supply chains will ease as the global economy emerges from a deep slump and the United States begins re-establishing trade relations and ... READ MORE >
CHART OF THE DAY: U.S. manufacturing expanded at fastest pace since 2018, ISM reports
American manufacturing activity continued its six-month expansion in October, according to Institute for Supply Management data released on Monday, with 15 of the 18 manufacturing industries included in the data reporting growth. October marked the fastest pace of manufacturing expansion in the United States since the fourth quarter of 2018, led by ... READ MORE >
RSM US Manufacturing Outlook Index breaks above 2018-20 downtrend
A rebound in U.S. manufacturing sentiment to the pre-trade war levels of the summer of 2018 implies that the domestic economy is moving briskly toward recovery. For this reason, we expect that the October Institute for Supply Management manufacturing index, set to be released on Monday, will reflect a modest improvement in overall sentiment and ... READ MORE >
CHART OF THE DAY: Markets prepare for favorable clean energy policies
Joe Biden’s clean energy plan has recently been a point of focus. And the prospect of a Biden victory in the presidential election has spurred a rise in stocks set to benefit from his proposed $2 trillion package, which is meant to kick-start the nation’s economy toward net-zero carbon emissions by 2050. By contrast, returns for oil and gas producers are ... READ MORE >
CHART OF THE DAY: Durable goods orders rise for fifth straight month
Orders for long-lasting factory goods increased for the fifth consecutive month in September, according to Commerce Department data released on Tuesday. New orders for durable goods rose 1.9% in September compared with August, with new orders for nondefense capital goods excluding aircraft and parts — a closely watched proxy for business investment — ... READ MORE >
Manufacturing firms continued expansion in October
U.S. manufacturing activity reached its highest level in two years in October, according to IHS Markit’s Flash U.S. Manufacturing Purchasing Managers’ Index data released Friday. The index posted a reading of 53.3 in October, up from 53.2 in September. This month’s reading was slightly below economists’ forecasts, which called for the index advancing to ... 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 >
Latest ISM data shows manufacturing activity cooled in September, but still grew
The Institute for Supply Management index, a closely watched measure of U.S. manufacturing activity, decreased in September to 55.4 from 56 in the previous month and fell below market expectations of 56.5. While this marks the fifth month in a row that economic activity expanded for manufacturing, the growth was smaller than in August. Readings above 50 ... READ MORE >