Manufacturing Production Manufacturing output declined 0.1 percent in October after having risen appreciably in each of the previous three months. The durable goods sector fell 0.4 percent with decreases in most of its major components. Losses of more than 1.5 percent were recorded for nonmetallic mineral products, motor vehicles and parts, and furniture and related products.  Wood products; fabricated metals; computer and electronic products; electrical equipment, appliances, and components; and aerospace and miscellaneous transportation equipment all registered declines of less than 1.0 percent. The nondurable goods sector rose 0.2 percent. Textile and product mills, paper, chemicals and of food, beverage, and tobacco products all experienced gains.

(2002=100) Source:  Federal Reserve Board

Manufacturing Employment In November, employment in the manufacturing sector declined by 41,000. The average monthly decline for the past 5 months (-46,000) was much lower than the average monthly job loss for the first half of this year (-171,000). About 2.1 million manufacturing jobs have been lost since December 2007; the majority of this decline has occurred in durable goods manufacturing (-1.6 million). Manufacturing Employment by State Average Annual Manufacturing Employment by State: 1998-2008

(in 1,000s, seasonally adjusted) Source:  Bureau of Labor Statistics

Purchasing Managers Index Manufacturing growth decelerated in November as the PMI registered 53.6, a decrease of 2.1 points from October's 55.7 index. This continues the recovery in the sector, but at a slower rate of growth. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. PMI History

(in percent) Source:  Institute for Supply Management

U.S. Merchandise Trade Deficit In September, the goods deficit increased $5.6 billion, or 13.4 percent, to $47.6 billion. Exports increased $3.5 billion, or 4.7 percent, to $90.3 billion, and imports increased $9.1 billion, or 7.1 percent, to $138.0 billion. The increase in exports reflected increases in capital goods ($1.7 billion); industrial supplies and materials ($1.4 billion); consumer goods ($0.5 billion); automotive vehicles, parts, and engines ($0.2 billion); and other goods ($0.2 billion). The increase in imports reflected increases in industrial supplies and materials ($5.5 billion); automotive vehicles, parts, and engines ($1.7 billion); capital goods ($0.8 billion); consumer goods ($0.7 billion); and other goods ($0.5 billion).

(millions of dollars) Sources:  Census Bureau, Bureau of Economic Analysis

Average Hourly and Weekly Earnings In November, average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls edged up 1 cent, or 0.1 percent, to $18.74. Average weekly wages rose $4.08 (0.7 percent) to $622.17. Over the past 12 months, average hourly earnings have risen 2.2 percent, while average weekly earnings have risen by 1.6 percent. Average Hourly Wages for Manufacturing Workers by State:  2003-2008

(in dollars) Source:  Bureau of Labor Statistics

Average Weekly Hours In November, the average workweek for production and nonsupervisory workers on private nonfarm payrolls was unchanged at 33.0 hours. The manufacturing workweek increased 0.1 hour to 40.0.

(in hours) Source:  Bureau of Labor Statistics

Manufacturing Capacity The factory operating rate showed no change from its September level of 67.6 percent. Capacity utilization for industries at the crude stage edged up 0.1 point to 83.1 — a rate 3.5 points below its 1972-2008 average. Industries at the primary and semifinished stages increased 0.1 point to 67.4 — a rate 14.6 points below its long-run average. Industries at the finished stage edged up 0.1 point to 69.5 — a rate 8.2 points below its long-term average.

Manufacturers' New Orders New orders for manufactured goods in October — up six of the last seven months — increased $2.1 billion, or 0.6 percent, to $360.5 billion. The durable goods sector decreased $1.0 billion, or 0.6 percent, to $166.6 billion. Machinery had the largest decrease of $2.0 billion, or 8.5 percent, to $21.6 billion. The nondurable goods sector increased $3.1 billion, or 1.6 percent, to $193.9 billion.

August 2009	September 2009	October 2009	Monthly% Change
352,770	358,430	360,521	0.58

(in millions of dollars) Source:  Census Bureau

Manufacturers' Unfilled Orders In October, unfilled orders — down 13 consecutive months — decreased $2.9 billion, or 0.4 percent, to $730.8 billion. This was the longest streak of consecutive monthly decreases since the series was first published on a NAICS basis in 1992. The durable goods sector decreased $2.9 billion, or 0.4 percent, to $730.8 billion. Transportation equipment had the largest decrease of $2.2 billion, or 0.5 percent, to $424.3 billion.

August 2009	September 2009	October 2009	Monthly% Change
736,634	733,747	730,827	-0.40

(in millions of dollars) Source:  Census Bureau

Manufacturers' Inventories In October, inventories — up following 13 consecutive monthly decreases — increased $1.8 billion, or 0.4 percent, to $493.0 billion. The durable goods sector decreased $0.3 billion, or 0.1 percent, to $303.8 billion. Machinery had the largest decrease of $0.2 billion, or 0.5 percent, to $48.1 billion. The nondurable goods sector increased $2.0 billion, or 1.1 percent,  to $189.2 billion. Petroleum and coal products led the increase with an increase of $1.6 billion, or 6.1 percent, to $27.4 billion.

August 2009	September 2009	October 2009	Monthly% Change
497,473	491,229	492,989	0.36

(in millions of dollars) Source:  Census Bureau