Members:

Here is the Monday Manufacturing Economy Report plus the December Global Economy Report from NAM Chief Economist Chad Moutray for 4/16/2018. 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:
"In the latest Manufacturers’ Outlook Survey , 93.5 percent of respondents feel positive about their own company’s outlook, the second-highest reading in the survey’s 20-year history following the all-time high of 94.6 percent in December. Optimism has been at historically high levels over the past five quarters, averaging 92.1 percent. Sentiment is sharply higher than two years ago, with an average of 64.3 percent in 2016. Manufacturers continue to be upbeat following Washington’s passage of the comprehensive tax cuts package and its less burdensome approach toward regulatory policy—pro-growth stances that will help manufacturers compete in the global marketplace. (For more on this, see my testimony last week to the Joint Economic Committee.)
Beyond the headline numbers, the underlying data also reflect record-breaking strength in many areas. This includes sales, which are expected to grow 5.7 percent over the next 12 months, the fastest pace since the fourth quarter of 1997. In addition, the rates of growth for capital spending (3.9 percent), employment (2.9 percent) and inventories (1.7 percent) over the year are at new all-time highs in the first quarter survey. With ever-tighter labor markets, wages for full-time employees are predicted to rise 2.6 percent over the next 12 months, the highest rate in 17 years. For the second straight survey, the inability to attract and retain a quality workforce registered as the top business challenge for manufacturers, cited by 74.7 percent of respondents. " Read the Full Economic Report Here

Here are some highlights from the  Global Report:
" In March, all but one of the top-20 markets for U.S.-manufactured goods expanded, illustrating the strength of the international economy once again. (There is no manufacturing PMI for comparison purposes for Belgium, which is our 12th-largest trading partner.) The lone market in contraction was South Korea , which has been weak for much of the past year, particularly as the economy has grappled with political uncertainties.
For its parts, U.S.-manufactured goods exports rebounded strongly in 2017—a nice turnaround after global economic weaknesses in the two prior years—and a trend that has continued into 2018. U.S.-manufactured goods exports totaled $175.22 billion in January and February of this year, up 4.99 percent from the year-to-date total of $166.89 billion in 2017. Moreover, U.S.-manufactured goods to our top-two trading partners—Canada and Mexico—also improved through the first two months of this year relative to last year. In general, trade volumes have risen significantly over the past year as the overall health of the global economy has strengthened. Nonetheless, the U.S. trade deficit rose from $56.67 billion in January to $57.59 billion in February, the highest level since October 2008, as the gain in goods imports outstripped the increase in goods exports.  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