U.S. Manufacturing Just Posted Best Year Since 2004
“acceleration in bookings indicates production will remain robust in coming months”
At a town hall meeting in 2016, then President Obama said of manufacturing: “Some of those jobs of the past are just not going to come back.”
With that in mind, it’s very interesting to learn that manufacturing in the United States is up. Way up.
Katia Dmitrieva reports at Bloomberg:
Manufacturing in the U.S. Just Accelerated to Its Best Year Since 2004
U.S. manufacturing expanded in December at the fastest pace in three months, as gains in orders and production capped the strongest year for factories since 2004, the Institute for Supply Management said Wednesday.
The survey-based measure of factory activity — the year’s second-highest behind September, when storm-related supply delays boosted the index — brings the 2017 average to 57.6, the best in 13 years. The latest gain extends a string of strong readings that’s been fueled by more domestic business investment, improving global economies and steady spending by American households.
A common refrain from companies surveyed, though, was difficulty finding highly-skilled labor, and some firms are paying higher wages to attract the workforce needed, ISM manufacturing survey committee chairman Timothy Fiore said on a conference call with reporters.
The acceleration in bookings indicates production will remain robust in coming months as factories race to limit mounting order backlogs amid declining customer inventories. Increasing export orders underscore improvement in global markets.
The Business Times has more:
US manufacturing activity jumps in December: survey
The manufacturing sector that is central to the US economy continued to expand at a strong pace in the final month of 2017, according to an industry survey released Wednesday.
A surge in new orders and strong manufacturing output pushed the Institute for Supply Management’s (ISM) purchasing managers index up 1.5 points to 59.7 per cent, its second highest level in seven years after hitting a peak in September.
This chart puts things in perspective:
Manufacturing job growth is outpacing overall job growth — for the first time in years. pic.twitter.com/NNUieIKnC5
— Jed Kolko (@JedKolko) January 3, 2018
In this chart, the green line represents new orders:
Huge news today –> New manufacturing orders have jumped to their fastest pace since January 2004! https://t.co/A1YoxbyAEX pic.twitter.com/B76JEcfYED
— National Association of Manufacturers (@ShopFloorNAM) January 3, 2018
A report from Reuters via CNBC indicates that manufacturing will likely get a boost from the new tax reforms as well:
ISM manufacturing and construction spending both clock gains
U.S. factory activity increased more than expected in December, boosted by a surge in new orders growth, in a further sign of strong economic momentum at the end of 2017.
The economy’s robust fundamentals were also underscored by other data on Wednesday showing construction spending rising to a record high in November amid broad gains in both private and public outlays…
Manufacturing is likely to get a boost this year from a $1.5 trillion tax cut approved by the Republican-controlled U.S. Congress last month. The overhaul of the tax code, the most sweeping in 30 years, slashed the corporate income tax rate to 21 percent from 35 percent.
Business spending surged in anticipation of the corporate tax cuts. Recent weakness in the dollar and a strengthening global economy are expected to buoy exports of U.S.-made goods, which would underpin manufacturing.
Where are all the liberal economists like Paul Krugman who predicted the end of the world when Trump was elected? More importantly, do they ever get tired of being wrong?
Featured image via YouTube.
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“Some of those jobs of the past are just not going to come back.”
Fortunately, Obama as POTUS is one of those.
Don’t give Obama all the credit. Every Uniparty Globalist has been saying that for decades. It’s nice to have somebody in power challenging that paradigm.
Yup, Obama the Prophet of Doom, the Sphincter of Serendipity, the Turd of Tragedy, the Groan of Gout…how we miss thee, along with your gracious wife dressed in a table cloth. But the comedy hour is over now, and America is back to work!
I’m smiling now, just thinking how the Democrats must be gritting their teeth. Wouldn’t it be nice if a few Dems decided they might prefer the GOP instead of the DNC?
LOL funny and true 🙂
And I’m pretty sure a few Dems already voted GOP in the 2016 election. That is a big ingredient in how shocked they and the media were at the Hillary loss. Both are hopeful they can keep Trump’s popularity low enough to prevent it from being sustained. That, and trying to convince voters that the GOP is only interested in rich white men.
“Some of those jobs of the past are just not going to come back.”
That’s a bald statement of economic reality. In truth, we don’t want some jobs to come back. We prefer new jobs created by the innovation of market economics.
Or would you like to work in a buggy-whip factory…???
Two things to note…
1. manufacturing output has been growing for years (contra the demagoguery of pols like Der Donald)
2. orders are up, which is great, but look at the employment trend in the same graph…trending down (this will improve, but only to a degree)
3. “Increasing export orders underscore improvement in global markets.” And that means jobs rippling all through our economy, as people work to send and receive products all over the world.
That’s a thing threatened by the announced trade policy of Mr. Establishment. That has to be fought.
No manufacturing growth has not been going up for years. Please note the 10 year and then the max setting.
Yes unemployment rate has been going down. Please compare the current downward movement of unemployment to previous presidents. AND what kind of federal intervention through interest rates and deficit spending did it take to make this “miracle”. BTW interest rate are still historically (and in my mind artificiality) low.
“Mr. Establishment” lowered the corporate rate … you know the one that started the inversion spree.
Could you see any more gloom and doom. I think your hatred for Trump is blinding you to the good that he can actually take credit for. And I for one do not want to go back to the real Mr. Establishment Barak Obama or his Sister Mrs. Establishment Hillary Clinton. But yeah Rags keep spinning for the Dims.
Read the chart.
I never said employment was not improving. Employment in manufacturing is SHOWN by the chart LaChance uses as declining.
Read the chart.
The same trend you see in the chart I link to above. More manufacturing output with steeply declining manufacturing employment. The same trend in virtually all Western nations.
T-rump and the GOP lowered the corporate rate. A nominally Republican, pure Establishment, thing to do, but a good thing.
I’ve said before. You don’t read well, huh?
You said “manufacturing output has been growing for years” it hasn’t.
You said “I never said employment was not improving.” I didn’t address that because you didn’t say it. Plus, declining employment in this area with a steady manufacturing output means increased productivity in this sector, which means jobs elsewhere. It is also disingenuous to say that something that happened a week ago (tax cuts) is going to have immediate impact. We see the stock market rising because it is a forward looking discount mechanism and the market thinks that in the future these things that are happening now will result in profits.
Rags I am very familiar with charts, I look at them all day. Unfortunately they are like statisticians and they only tell a part of the story.
For someone who trusts free markets you sure don’t like to be wrong. Do you think that when I make a bad trade that name calling will bring my money back. Seriously man grow up.
when someone has a fixation, you cannot convince him that when the sun is out it is day nor when the moon is out it is night.
he comes up with singularity reasons why he is correct and you are a misguided fool not worthy of his greatness – doncha know ?
Seems to me, 4th armoire div., instead of stupidly attacking me, you should be apologizing for your libel against me.
“orders are up, which is great, but look at the employment trend in the same graph…trending down”
My mistake on the employment point .. you were making it specifically about manufacturing employment.
But as I have stated steady man. output with declining man. employments means increased productivity which leads to jobs elsewhere.
And all that achieved without the Black Baby Jesus’s help.
Win-win for America!
My 12 year old grandson understands trade better than some people.
1. We have never, in our entire history, had “free trade”. It does not and never has existed. It is a theoretical construct. It might be the best way. We don’t know. It has never been tried anywhere.
2. We have a system of managed trade. Trade deals with other countries. The trade deals may or may not be advantageous to American workers. Most have not been.
I’m all for free trade. We don’t have it and it is impossible to achieve without a tax system that taxes everything the same way in all countries party to the free trade agreement.
If there is a demand for buggy whips they’ll get made. No reason they cannot be made here.
One of your funniest, least historically true, and economically ignorant loads of pure bullshit.
Both the British and Dutch became powerhouses of wealth creation via essentially free trade. Both were nations relatively poor in natural resources. Adam Smith chronicled this over two hundred years ago.
The Swiss have very little in the way of “trade agreements”, and are one of the wealthiest nations on earth, with worker participation rates and wages that benefit “workers” enormously compared to “managed trade” nations.
There’s REASONS buggy whips SHOULD NOT be made here. But having an elitist “bright” “manage” any aspect of our economy could easily mandate they be made here.
I trust market economics, and leaving people free to chose. I don’t trust economic idiot demagogues. Maybe your grandson can explain some of this to you.
Sit down with him and watch this…
Gawd, early taxation for the U.S. government was in the form of customs duties and excise taxes, because the Constitution expressly forbade capitation taxes. It wasn’t until the shitty 16th amendment in 1913 that taxation came for individuals. Governments are loathe to give up any tax that they already have. So as with any government operation we get the crony-ism of playing favorites on the customs duties. So no, our trade hasn’t been free, from the beginning of this country and yes we have a history of playing favorites when it comes to trade. It was an easy step to create Trade alliances with other countries.
No trade in any country is technically free, because once the bureaucrats see money they are going to find a way to divert it into themselves. No matter how you look at it this, it is a market distortion. The less it happens the better for the economy.
As to the the countries you listed the key component that you noted was resource poor. This country is NOT resource poor so much of what is needed can be got within our borders, the actual need for outside trade is minimal. Plus there is an American attitude that we can make or create what we need anyway.
As to the buggy whip example, why after all the blow harding regarding free trade would you take the opposite tact of Barry and say they shouldn’t be made here? They should be made wherever someone thinks they can make some money or a nice hobby doing. Period.
Rags, marketplaces have things in them that are in your opinion dumb, when you will you realize that when you’re pontificating your opinion as such you are no better than the idiot demagogues that you disagree with no matter what form they take. Free means free to be stupid. Name calling doesn’t make you right.
“As to the buggy whip example, why after all the blow harding regarding free trade would you take the opposite tact of Barry and say they shouldn’t be made here?”
Because sound economics says they should not be made here.
Not that anyone would or should prevent you from going into the buggy-whip business. Well, unless it was someone who loves you and doesn’t want to see you financially ruined.
This is clearly too hard for you. You are unable to follow, and you write contradictory stuff.
And you are the sole purveyor of sound economics? Sounds like you are central planner to me. This is my problem with you, you talk the talk but you don’t walk the walk. Free means free. If buggy whips are needed they will be made by whomever and wherever that someone one wants to make them, and for whatever reason they deam fit.
“Both the British and Dutch became powerhouses of wealth creation via essentially free trade.”
Loads of horseshit, something your known for. I guess using the word “essentially” is your out.
Essentially free trade apparently includes monopolies granted to trade companies and the subjugation of native workers to produce.
The Indians would like to know where that free trade was for them. They didn’t get a choice.
And lest we not forget, the wars between them occurring, some free trade that.
You’re an idiot.
No, you poor, lying old nutter, the British and Dutch traded freely with each other, with the rest of the Western world, including South America, etc., and with the East.
LOOOOOOONG before that, the Vikings, the Greeks, and the Romans were trading on free terms with the known world.
That’s how they built the civilizations and cultures they had.
So easy to show your nutterdom…!!!
Making slaves out of the people you are “trading” with is not free trade you poor ignorant moron.
Carving out area’s to ply your trade with no competition is not free trade you poor ignorant moron.
Making war upon your trading neighbors is not free trade you poor ignorant moron.
You really are delusional. I thought you were just Trump deranged. On that I was wrong.
You are making the case for Western imperialism and rank exploitation over centuries.
It wasn’t like that, you Prog sucker.
“It wasn’t like that, you Prog sucker.”
It was exactly like that Prog moron. British and Dutch imperialism certainly existed.
Better go study some history, boy.
Yes. They did. And they ALSO did NOT. The Dutch and Brits didn’t prosper by oppression. No more than the Greeks, or even the Vikings.
You’re just a SJW, snowflake.
You could just be an ignorant moron.
You could just be lying.
I’m quite sure it is both.
Anyone that has a passing acquaintance with history knows your FOS.
Awww…. Such a SJW, making the case for the bad, bad rapacious Dutch and Brits.
And trying to make the case that there was no period of free trade.
What a stinking, cowardly liar.
“What a stinking, cowardly liar.”
Wow, thanks, I’ve been elevated to Fuzzy Slippers status!
You are of course just a nut that knows nothing. Nothing about trade, how it is practiced, or the history of trade practitioners.
You like to go “Free trade” as some sort of virtue signal. It doesn’t work with intelligent people. You are, just a deranged NUT.
Oh, wait, darnit. Fuzzy got the “evil” status as well. I’m just second tier.
Barry, keep at it. You, too, can be deemed “evil” by Rags. It’s nice to have a goal. 😛
And the Dow Jones just hit 25,000 too.
Yep. Been trending up for years now. Some warn of a bubble.
Markets go up and markets go down. This is their nature.
We have been in a bubble for years … look at the interest rate. Just because job creation has been anemic doesn’t mean that the bubble hasn’t been going on for quite some time.
The problem is that the bureaucrats are working on partial information, but believe arrogantly that they are not (they think they are smarter than they are). This causes them to do things that might cause problems in the future and because they caused that problem they really can’t see them to fix them. The problem of Central Planning.
The same naysayers have predicted 17 of the last 3 recessions.
As an aside…
Dude, step back and look at your life. Where as many frequent commenters here are addicts of this blog, you sit in front of the screen all day and night screaming at the internet as though prickly comments ad nausea added up to a penny in currency of some sort.
To be honest- your comments have long since stopped being interesting or topical and are grazed over in my readings (yes- I’m on here about 20 times a day), which begs the question what exactly are you communicating, who are you communicating it to and what do you expect to have happen as a result of that communication?
In a nutshell, you are not well and share a room on the internet with the unwell who are unwelcome at family gatherings and write manifestos which unpleasantly end up in the news.
“Both the British and Dutch became powerhouses of wealth creation via essentially free trade. Both were nations relatively poor in natural resources.”
Well, except for when they were fighting actual wars with each other and everyone else as necessary to control markets…. and in service to a mass labor economy in all sectors (agriculture, manufacturing, trade, etc.)…. and with vast areas of the globe to expand into and conquer for resources both physical and otherwise….
Yep. Exactly the same.
Unlike you, Adam Smith was neither historically ignorant nor in the grip of insanity and would take those changed circumstances into account.
I guess you can’t help being so bitter, what with only having smoke, mirror, and bullshit to support you.
You ignored the Swiss. Very modern, very current, very good model for our discussion.
Adam Smith would totally agree with the points I’ve made. Largely because what he observed were constants, and one was human nature.
“You ignored the Swiss.”
A member of the European Free Trade Association and a country with numerous trade agreements with other countries.
You make my point. It’s managed trade. The Swiss of course, manage for the betterment of the Swiss.
Really? Name all their trade agreements.
“The FREE Trade Association…”???
You must have missed that term, huh?
““The FREE Trade Association…”???
You must have missed that term, huh?”
LOL, it’s what you progs do, name it the opposite of what it really is.
It’s a trade management deal, nothing free about it you ignorant moron.
So. You got nothin’.
You’re a lying nutter who can’t support your bullshit.
I see SDN beat me too it, hadn’t read his comment before posting above.
Ragspee is, as always, FOS.
And you’re always a lying nutter. Constant as the Northern Star.
You don’t even understand the concept of free trade you drooling idiot.
Sober up, and watch the Brexit Movie. You might learn something.
OBTW, let’s try an experiment; you don’t post against any of my posts for a week. I doubt you can do it.
I certainly CAN reciprocate.
Forget it proggy.
You quit posting lies and bullshit.
Get yourself another drink.
Poor poisonous, lying insane sack of shit…!!!
“…you don’t post against any of my posts for a week.”
By the way, retard, it was you that responded to my comment, not the other way around.
Wipe the spittle off your chin.
Oh, PLEASE, liar…!!!
You and your 12 year old grandson…
What a lying POS…!!!
Here, bedwetter, you can take a small bite. Start the Brexit Movie at about 50:00, so it won’t hurt your pathetic lil’ brain.
Have a drink. I watched that movie a long time ago.
Why you think it supports your nutty assertions is beyond me.
Bedwetter. Hmm, projecting? You do act a child.
Get yourself a history book. You need remedial education.
“Why you think it supports your nutty assertions is beyond me.”
Well, clearly. So MANY things are beyond you.
Like basic economics.
Like the national wealth and freedom of the Swiss.
Like taking in facts about trade as a function of liberty.
Or telling the truth.
Or being able to act like anything but a stupid, lying, nutter troll, as I demonstrate here.
So very much is beyond you.
Fortunately for me, everyone else recognizes your lies as lies, your economic prowess as delusions, and your knowledge of history as either pathetic or delusional, might be both.
You’re really quite mad.
DOW 25,000 fueled by new hiring in private sector.
Rags, NeverTrumpers and RINOs move cocktail hour back to 10am
Read the chart. If you’re sober…