Manufacturing growth eased from its breakneck pace in April as supply chain bottlenecks and material shortages increase backlogs and limit production efforts. The Institute for Supply Management’s manufacturing index eased to 60.7 in April from a 38-year high of 64.7 in March. Readings above 50 indicate an expansion, and readings below 50 indicate a ... READ MORE >
manufacturing
CHART OF THE DAY: Surging RSM US Manufacturing Outlook Index implies a robust recovery
For the second month in a row, manufacturers’ optimism surged in April, which implies further acceleration in overall industrial production and manufacturing conditions. This is also the second consecutive month that the RSM US Manufacturing Outlook Index stood at least 2 standard deviations above neutral, which signifies a statistically significant ... READ MORE >
CHART OF THE DAY: Rational exuberance and the RSM US Manufacturing Outlook Index
The manufacturing sector is signaling extreme confidence in a rapid end to the pandemic-induced economic shutdown and to the global manufacturing recession that preceded it. From our vantage point, this reaffirms our robust growth outlook of a 7.2% economic expansion for this year and our expectation that one million jobs will have been added to total ... READ MORE >
CHART OF THE DAY: Manufacturing sector leading the way out of recession
The economic downturn caused by the pandemic has had many unusual dynamics, and one of these is that the manufacturing sector, along with housing, is leading the way to recovery. The recovery in manufacturing began as early as last September, when annual sales growth in the sector turned positive. More recently, January’s sales rose by 7% annually, a ... READ MORE >
RSM US Manufacturing Outlook Index: A sustained recovery as rebound takes shape
The outlook for manufacturing in the United States continues to improve, signaling a robust rebound as the post-pandemic economy takes shape. For the seventh consecutive month, the RSM US Manufacturing Outlook Index increased, showing above-normal sentiment. It’s more evidence that the U.S. manufacturing sector continues to lead the economy out of the ... READ MORE >
The impact of Brexit on U.S. manufacturing companies
While Britain voted to leave the EU in 2016 and companies had about four years to prepare for the change, there was not much clarity on what Brexit would mean for companies until Dec. 24, 2020, when the post-Brexit trade deal—the UK-EU Trade and Cooperation Agreement—was finalized. Plenty of questions remain about what the specific impacts of the deal will ... READ MORE >
U.S. industrial production growth continues
The Federal Reserve said on Wednesday that 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 economic shutdown last spring. Total production rose 0.9% in January, following an increase of 1.3% in December. The results were slightly above the ... READ MORE >
CHART OF THE DAY: Manufacturing remains strong despite labor, supply chain challenges
U.S. manufacturing activity remained robust in January but faced challenges on the labor and supply chain front, according to new data released Monday by the Institute for Supply Management. These challenges are limiting production and driving up prices. The ISM’s Manufacturing Purchasing Managers’ Index – a key indicator of manufacturing activity – ... READ MORE >
RSM US Manufacturing Outlook Index: Mixed results and a potential pause in the recovery
Sentiment among American manufacturers has receded again because of the rapid spread of COVID-19 that has taken a toll on the labor market, consumer demand and the economy. Since bottoming out in April and then bouncing back by October, the RSM US Manufacturing Outlook Index is showing signs of retrenchment in some areas of the country. This implies ... READ MORE >
Economic recovery drives up raw material prices
Manufacturing activity during the pandemic tanked in April and May last year and has been inching toward recovery ever since. As manufacturing activity rebounds, companies are experiencing volatility not just in demand but also in raw material prices, which have been rising. Recovery in the automotive, construction and certain other manufacturing sectors ... READ MORE >