Monthly Economic Review
by the Congressional
Task Force on Manufacturing

Updated Daily as New Data Become Available

Manufacturing Production
Manufacturing output fell 1.0 point in May — more than 15 percent below its level a year ago. The production of durable goods fell 1.8 percent, with declines in most categories. The largest decreases were in motor vehicles and parts, and machinery. The nondurable goods sector edged down 0.2 percent. Gains in the output of food, beverages, and tobacco products; apparel and leather; and chemicals were offset by declines of more than 1 percent in textile and product mills, paper, and petroleum and coal products.

February
2009

Manufacturing Employment
The manufacturing sector lost 136,000 jobs in June. Manufacturing employment has declined 1.9 million during the recession. Employment losses in the durable goods sector include motor vehicles and parts (-27,000), fabricated metal products (-18,000), computer and electronic products (-16,000), and machinery (-14,000). Since the recession began, employment in motor vehicles and parts has declined by 335,000, or about one-third.

Purchasing Managers' Index
Manufacturing contracted at a slower rate in June as the PMI registered 44.8 percent, 2.0 points higher than the seasonally adjusted rate of 42.8 percent reported in May. This is the 17th consecutive month of contraction in the manufacturing sector. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.

U.S. Merchandise Trade Deficit
In April, the goods deficit increased $0.9 billion, or 2.2 percent, to $40.1 billion. Exports decreased $2.6 billion, or 3.2 percent, to $80.0 billion, and imports decreased $1.7 billion, or 1.4 percent, to $120.1 billion. The decrease in exports reflected decreases in industrial supplies and materials ($1.3 billion); capital goods ($1.1 billion); consumer goods ($0.5 billion); other goods ($0.2 billion); and automotive vehicles, parts, and engines ($0.2 billion). The decrease in imports reflected decreases in capital goods ($0.9 billion); industrial supplies and materials ($0.7 billion); other goods ($0.3 billion); automotive vehicles, parts, and engines ($0.1 billion); and foods, feeds, and beverages ($0.1 billion).

February
2009

March
2009

April
2009

-37,212

2.22

Average Hourly and Weekly Earnings
Average hourly earnings of production and nonsupervisory workers on private nonfarm payrolls in June were unchanged at $18.53. Weekly earnings dropped $1.85. Over the past 12 months, average hourly earnings have increased by 2.7 percent, while weekly earnings have risen by only 0.9 percent, reflecting a decline in the average workweek.

Average Weekly Hours
The average workweek for production and nonsupervisory workers on private nonfarm payrolls in June fell by 0.1 hour to 33.0 hours — the lowest level on record for the series, which began in 1964. The manufacturing workweek rose by 0.1 hour to 39.5 hours.

33.1

Manufacturers' New Orders
New orders for manufactured goods in May — up three of the last four months — increased $4.1 billion, or 1.2 percent, to $347.9 billion. This follows a 0.5 percent April increase. The durable goods sector increased $2.9 billion, or 1.8 percent, to $163.4 billion. Transportation equipment had the largest increase of $1.5 billion, or 3.8 percent, to $42.3 billion. The nondurable goods sector increased $1.2 billion, or 0.7 percent, to $184.5 billion.

March
2009

April
2009

May
2009

347,850

Manufacturers' Unfilled Orders
Unfilled orders in May — down eight consecutive months — decreased $1.8 billion, or 0.2 percent, to $747.3 billion. This was the longest streak of consecutive monthly decreases since November 2001-July 2002, and followed a 1.1 percent April decrease. The durable goods sector decreased $1.8 billion, or 0.2 percent, to $747.3 billion. Machinery had the largest decrease of $0.9 billion, or 1.0 percent, to $87.6 billion.

March
2009

April
2009

May
2009

-0.24

Manufacturers' Inventories
Inventories in May — down nine consecutive months — decreased $3.2 billion, or 0.6 percent, to $513.3 billion. This was the longest streak of consecutive monthly decreases since March 2003-January 2004, and followed a 1.2 percent April decrease. The durable goods sector decreased $3.3 billion, or 1.0 percent, to $322.1 billion. Primary metals had the largest decrease of $0.9 billion, or 3.1 percent, to $27.1 billion. The nondurable goods sector increased slightly to $191.2 billion. Petroleum and coal products had the largest increase of $0.7 billion, or 3.0 percent, to $25.2 billion.

March
2009

April
2009

May
2009