Automotive, Mining, Energy & Agriculture – Economic Driving Industries Down

The Federal Reserve Bank of Richmond Fifth District Survey of Manufacturing Activity

manufacturing activity slowed in September. Order backlogs and new orders decreased while shipments declined…manufacturers anticipated improved business conditions during the next six months. Producers expected faster growth in shipments and in the volume of new orders.”

US Raw Steel Production

US raw steel production rose 0.7 percent last week as mills operated at an ACUR of 71.4 percent. In the corresponding week last year mills operated at an ACUR of 78.1 percent. Thus far this year mills have produced approx. 64,000,000 tons at an ACUR of 72.5 percent compared to approx. 70,000,000 tons produced in the like period last year, at an ACUR of 78.0 percent.

The US Department of Commerce Advance Report on Durable Goods Manufacturers’ Shipments, Inventories and Orders for August 2015

  • New Orders for manufactured durable goods in August decreased 2.0 percent, down following two consecutive monthly increases.
  • Shipments of manufactured durable goods in August were virtually unchanged in August following two consecutive monthly increases.
  • Inventories of manufactured durable goods in August, up two of the last three months, were virtually unchanged.

The Chicago Fed National Activity Index (CFNAI) for August

Led by declines in production related indicators, the CFNAI fell to -0.41 in August from +0.51 in July. All four broad categories of indicators that make up the index decreased from July. The index’s three month moving average (CFNAI-MA3) ticked down to +0.01 in August from +0.02 in July. August’s CFNAI-MA3 suggests that growth in national economic activity was very close to its historical trend.”

The Bureau of Economic Analysis (BEA)

Its third and final “estimate” of 2nd quarter 2015 GDP reported on 9/25:

Real gross domestic product-the value of goods and services produced by the nation’s economy less the value of goods and services used up in production, adjusted for price changes, increased at an annual rate of 3.9 percent in the second quarter of 2015. In the first quarter, real GDP increased 0.6 percent.”

In my view this is a load of crap. Where is this growth coming from? According to the report…

the increase in real GDP in the 2nd quarter primarily reflected positive contributions from personal consumption expenditures, nonresidential fixed investment, state and local government spending and acceleration in residential fixed investment…”

Right, that will take you from 0.6 percent growth to nearly 4 percent growth in three months. Automotive cannot be all of it. It is not our military; Obama has cut that to shreds. It is not mining:

Caterpillar has announced a move to cut operating costs by $1.5 billion annually by slashing manufacturing space and reducing head counts…facility consolidations and closures could affect more than 20 locations…Caterpillar intends to permanently layoff roughly 4,000 to 5,000 salaried and management employees with a majority of the layoffs occurring in 2015. The company is targeting a total workforce reduction of more than 10,000 through 2018…”

American Metal Market

It is not energy, Obama has destroyed the coal mining industry as he promised to do, and…

A wave of bankruptcies and closures is sweeping across the oil patch with dozens of hydraulic-fracturing companies at risk, industry experts say.”

WSJ 9/24

It is not agriculture, as the selling price of those commodities has sunk to extreme lows due to surplus crops, forcing farmers to delay or cancel any equipment purchases. These are huge industries and huge drivers of economic growth in our country. When they are down, steel production and sales are down big.

RIP Yogi Berra

For us older baseball fans, a tribute to Yogi Berra whom we lost this week at the ripe old age of 90. Hall of Fame catcher for the New York Yankees, helped the team reach 14 World Series’ during his 18 seasons and played in more World Series games than any other major leaguer. RIP

The New York City school district was closed Friday in observance of some Muslim holiday. Can’t have Christmas, it’s a “winter holiday” now. Don’t get a day off in observance of Good Friday or Holy Thursday. Does this sound right to you? Fear? Pandering for votes? Politically correct bullcrap?

Have a great weekend…. God bless America!

Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.

Remember these tidbits as the election cycle grinds on:

  • Fast & Furious-Americans killed by guns supplied to the drug cartels…by the Department of Justice-Eric Holder presiding. The president was clueless. No one held accountable
  • Benghazi: Four Americans killed in an assault described as the result of a viral video. This was proved to be a false narrative. This was in fact, a planned act of terror. The president was clueless. No one even knows where he was as this went down. No one held accountable
  • “At this point, what difference does it make?” Hillary Clinton as Secretary of State
  • The IRS targeting of conservative groups and individuals. No one held accountable, Lois Lerner is on paid vacation and has refused to testify. The president was clueless. No one held accountable
  • Hillary using a private server for correspondence during her term as Secretary of State against the orders of the president. She thought “it would be more convenient…” Though the records were due when she left office, they were not submitted, subpoenas were issued, which she ignored for two years. Finally, she released 30,000 of some 60,000 alleged emails then she deleted the rest of the emails and will NOT turn over the server for investigation.