The RSM US Manufacturing Outlook Index showed modest improvement over the last month, likely due to a combination of easing oil and energy costs as well as improved external demand despite weaker domestic economic activity. Although current shipments remain robust, new orders moved lower, which implies ... READ MORE >
Industrials
Manufacturing sector activity hits lowest level in two years
U.S. manufacturing sector activity continued to slow in July to its lowest level in two years as demand and prices cooled off, the Institute of Supply Management reported on Monday. The manufacturing purchasing managers’ index inched down to 52.8 from 53 the previous month, still indicating growth as ... READ MORE >
Unexpectedly strong durable goods orders and trade data temper recession concerns
U.S. durable goods orders and the goods trade deficit in June beat expectations, according to data released Wednesday, tempering recession concerns before the Federal Reserve is expected to announce a rate hike later in the day. On top of that, shipments of nondefense capital goods excluding aircraft—a ... READ MORE >
RSM US Manufacturing Outlook Index shows a slowing industrial sector
The RSM US Manufacturing Outlook Index declined in June, signaling a slowdown in overall economic activity. The reading of 1.1 standard deviations below normal suggests that tighter financial conditions and the energy shock are taking a toll on the industrial sector. Our index is a composite of surveys ... READ MORE >
Preparing for a tsunami of imported goods
The recent reopening of China’s factory floors and the easing of its supply chain bottlenecks have prompted discussion about the ability of the U.S. supply chain to absorb what will be a tsunami of imported goods. With the value of the dollar rising, which lowers the cost of imported goods, demand for ... READ MORE >
Chart of the day: Industrial production hits a record amid signs of a slowdown
Industrial production in the United States hit a record in May, but signs of a coming economic slowdown emerged in the report released on Friday by the Federal Reserve. Production volume overall increased by 0.2% on the month for the fifth straight monthly gain. At the same time, manufacturing ... READ MORE >
Chart of the day: The long-term impact of a ban on Russian energy
As the war in Ukraine continues, the sanctions imposed on Russian oil and gas imports are playing a major role in the global energy crunch. But where is this impact being felt the most? Russia, after all, was the world’s largest exporter of natural gas last year and the second-largest exporter of oil ... READ MORE >
Inflation and gross margins—who is winning? Part 1: The transportation sector
RSM took a detailed look at gross margins across different peer groups in the industrials sector to see how each has fared during this time of high inflation. In this article—part of a series—we examine margins for the transportation sector. Here is what we found. The industrials sector played a ... READ MORE >
Manufacturing sector grew steadily in May
The manufacturing sector expanded at the slightly faster rate in May as demand remained strong, according to data from the Institute for Supply Management on Wednesday. The data will help alleviate some of the concern over an imminent recession as our recent RSM US Manufacturing Outlook Index dipped ... READ MORE >
RSM US Manufacturing Outlook Index shows 35% probability of recession over next year
The RSM US Manufacturing Outlook Index declined into negative terrain in May, signaling the impact of high inflation, rising interest rates, the lockdowns in China and the war in Ukraine. While this decline does not imply that the manufacturing sector or the U.S. economy has fallen into a ... READ MORE >