Members:

Here is the Monday Manufacturing Economy Report plus the  November Global Economy Report from NAM Chief Economist Chad Moutray for 11/13/2017. 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:
"...the labor markets continue to show signs of tightening—something that consumers noted in the University of Michigan report. Manufacturing job openings dipped from 435,000 in August—the highest level since January 2001—to 425,000 in September. Overall, however, the data suggest that manufacturers are posting new jobs at a very strong rate, with an improved economic outlook boosting employment growth. To put the current number in perspective, job openings in the sector were 326,000 one year ago. Beyond manufacturing, job openings for nonfarm payroll businesses edged up from 6,090,000 in August to 6,093,000 in September, just shy of the all-time high recorded in July (6,140,000).
In addition, manufacturing hiring remained positive in September, even as job growth pulled back from more robust paces in July and August. The sector hired 333,000 workers in September, pulling back from August’s level of 359,000, which was nearly a 10-year high. At the same time, total separations—including layoffs, quits and retirements—increased from 301,000 to 323,000, the highest level since June 2009. As a result, net hiring (or hires minus separations) fell from 58,000 in August to 10,000 in September. This implies average net hiring of 14,000 workers per month over the past 10 months, which is a relatively healthy growth rate."

Here are some highlights from the  Global Report :
"When considering why manufacturers remain so upbeat in their outlook right now, it is hard to ignore the positive impact of stronger growth internationally. The data continue to suggest that the sector has turned a corner. Indeed, the J.P. Morgan Global Manufacturing PMI rose from 53.3 in September to 53.5 in October, its fastest pace since March 2011. New orders, output, exports and employment are expanding at modest rates, with demand at a seven-month high and hiring at levels not seen since May 2011. Survey respondents are also optimistic for robust growth in production over the next six months. Moreover, all but one of the top-15 markets for U.S.-manufactured goods expanded in October, with Mexico contracting for the first time since July 2013, largely from the September 19 earthquake in Mexico City. It is expected that Mexican activity will expand once again in November.
Europe continued to dominate the list of the top export markets with strong manufacturing growth. The IHS Markit Eurozone Manufacturing PMI increased to its highest level since February 2011, buoyed by the best readings in France , Germany , Italy and the Netherlands in more than six years. Moreover, real GDP in the Eurozone rose 0.6 percent in the third quarter. That translated into 2.5 percent growth year-over-year, the quickest pace since the first quarter of 2011. New industrial production figures will be released on November 14, which it is hoped will build on August’s increase of 1.4 percent. Over the past 12 months, industrial production has jumped 3.8 percent. In a similar way, retail sales bounced back strongly in September, up 0.7 percent for the month and rising 3.7 percent year-over-year. Indeed, consumer confidence continues to move in the right direction, increasing once again in October to 10-year highs. Meanwhile, the unemployment rate in September fell to 8.9 percent, the lowest level since January 2009."

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