Members:

Here is the Monday Manufacturing Economy Report NAM Chief Economist Chad Moutray f or 10/22/2018. The Council of Industry, as member organization of the National Association of Manufacturers is happy to share this report with our members. 

Here are some highlights from the report:

" Manufacturing production increased 0.2 percent in September, rising for the fourth straight month and five of the past six months. The sector continues to see strong growth, with manufacturing output up 3.5 percent over the past 12 months, the best year-over-year rate since April 2012. Similarly, manufacturing capacity utilization inched up from 75.8 percent in August to 75.9 percent in September, matching the rate in April, with both at utilization rates not seen since August 2015. In September, durable goods production rose 0.6 percent, but output among nondurable goods manufacturers edged down for the second consecutive month, off 0.1 percent for the month.
Similarly, total industrial production rose 0.3 percent in September, extending the 0.4 percent gain in August. In addition to increased manufacturing output, mining production grew 0.5 percent, with utilities output flat. Over the past 12 months, industrial production has risen a robust 5.1 percent, the fastest year-over-year pace since December 2010. Mining and utilities have grown 13.4 percent and 5.4 percent year-over-year, respectively. In addition, capacity utilization remained at 78.1 percent in September, just shy of the 78.2 percent reading in April, which was the best rate since February 2015.

Robust economic growth has also tightened the labor market significantly, with the inability to find talent being the top challenge cited in the most recent NAM Manufacturers' Outlook Survey. To further illustrate why that is such a significant problem, job openings for nonfarm payroll businesses soared to a new all-time high, up to 7,136,000 in August. There are more job openings in the U.S. economy than the number of people looking for work (6,234,000 in August and 5,964 in September), and total quits in the nonfarm sector were 3,577,000 in August, off just slightly from 3,608,000 in July, which was a record high. The August quits number was the second-highest level in the history of the JOLTS data. This suggests Americans are feeling more comfortable leaving their job, likely to pursue other opportunities. Nonetheless, manufacturing job openings pulled back slightly from a 17-year high in July but remained highly elevated in August. Manufacturers posted 488,000 job openings in August, down from a revised 496,000 in July, which was the best reading since January 2001. "   Read Chad Moutray's Full Report Here.


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