Members:

Here is the Monday Manufacturing Economy Report plus the December Global Economy Report from NAM Chief Economist Chad Moutray for 3/12/2018. The Council of Industry, as an affiliate organization of the National Association of Manufacturers is happy to share this report with our members. 

Here are some highlights from the Monday Report:
" Manufacturers added 31,000 workers in February, and revisions in the December and January data increased employment in the sector by 28,000 in total from previous estimates. As such, the latest jobs numbers confirm that the labor market has tightened significantly, with manufacturers increasing employment by a rather robust 18,876 per month on average since the end of 2016. That is quite a turnaround from the sluggish job growth in 2016, and it is a sign that firms have continued to accelerate their hiring as the economic outlook has strengthened and demand and production have improved considerably. Indeed, manufacturers have told us that challenges in recruiting new workers is their primary business concern right now.
Along those lines, average weekly earnings for production and non-supervisory employees in manufacturing rose from $891.63 in January to $900.55 in February. That translated into 3.8 percent growth over the past 12 months, up from $867.30 in February 2017, which further illustrates the strength of the labor market right now. Since the end of the Great Recession, manufacturing employment has risen by 1,161,000 workers, with 12.61 million employees in the sector in this report. That is the highest level of manufacturing employment since December 2008. " Read the Full Economic Report Here

Here are some highlights from the  Global Report:
" Financial markets have been quite volatile over the past few weeks. Fortunately, the global manufacturing sector continues to be healthy. In February, all of the top-20 markets for U.S.-manufactured goods expanded, illustrating the strength of the international economy once again. In addition, the J.P. Morgan Global Manufacturing PMI edged down from 54.4 in January to 54.2 in February, and it remained just shy of December’s pace, which represented the fastest pace since February 2011. New orders, output and exports were somewhat softer in February but still quite positive. Hiring growth was not far from the December reading, which—like the headline index—was the best since early 2011. Manufacturing leaders remain very upbeat in their global outlook for the next six months, with the measure for future output at a three-year high.
The U.S. dollar has trended higher over the past few weeks, up 1.9 percent since January 25. The trade-weighted U.S. dollar index against major currencies from the Federal Reserve Board has risen from 84.6338 on January 25—its lowest level since December 18, 2014—to 86.2256 on March 2. This index reflects currency units per U.S. dollar, suggesting that the dollar can now purchase somewhat more than it could before. The index registered 75.7513 on June 30, 2014, illustrating the dollar’s continued strength, up 13.9 percent over that time frame. With that said, one of the most significant stories last year was the depreciating U.S. dollar. Since the end of 2016, it has declined 9.9 percent against major currencies.  Read the Full Global Report Here.

Harold King
Executive Vice President
The Council of Industry
6 Albany Post Road
Newburgh, NY 12550
845-565-1355
hking@councilofindustry.org