Manufacturing Positivity
Manufactured Goods New Orders
New Orders for Manufactured Goods increased by 1.4% ($7.6 billion) to a record $544.2 billion in January. This New Orders indicator has been up eight of the last nine months, and up twenty of the last twenty months, according to the US Census Bureau.
According to the report, Transportation Equipment (up three consecutive months) led the increase, up 3.4% or $2.9 billion.
Shipments (also up 8 of the past nine months and 20 of the last 21 months) increased 1.1% or $6.2 billion to $536 billion. Machinery (up ten of the last eleven months) led the increase, $1.0 billion or 2.7 percent to $38.9 billion.
Overall, the manufacturing sector continued to expand strongly—despite lingering supply chain, workforce and pricing pressures—with new orders soaring 13.6% year-over-year.
Link: Click on Press Release under “Manufacturers’ Goods:” https://www.census.gov/economic-indicators/
ISM PMI
ISM PMI Index rose in February on the strength of fast growing New Orders – 21 consecutive months of growth, with February topping January by 1 percentage point.
According to ISM, “Demand expanded, with the (1) New Orders Index increasing and remaining in strong growth territory, supported by stronger expansion of New Export Orders, (2) Customers’ Inventories Index remaining at a very low level and (3) Backlog of Orders Index increasing to historically high levels.”
Read the full ISM PMI report at the link that follows. It is definitely worth your time: https://www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/pmi/february/
Manufacturing Activity- Dallas Fed
A great report!
“Texas factory activity continued to increase but at a slightly slower pace in February, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, came in at 14.5, down two points from January but still indicative of above-average output growth.
Other measures of manufacturing activity also indicated continued growth. The new orders index pushed up three points to 23.1, while the growth rate of orders index held steady at 12.6. Both readings are significantly above average. The capacity utilization index was unchanged at 11.5, and the shipments index rebounded 15 points to 23.5 after its January drop.
Perceptions of broader business conditions improved in February.”
Link: https://www.dallasfed.org/research/surveys/tmos/2022/2202
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