The Federal Reserve Bank of Richmond Fifth District:  Survey Finds Manufacturing Activity Increased

Fifth District manufacturing activity increased moderately in July…shipments and new orders picked up this month and order backlogs also strengthened. Manufacturing employment softened this month and average wages continued to increase at a moderate pace. Prices of raw materials rose more quickly in July than in June while prices of finished goods grew about on pace…. manufacturers remained optimistic about future business conditions and participants expected faster growth in shipments and in the volume of new orders in the six months ahead.”

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

  • New Orders for manufactured durable goods in June increased 3.4 percent. This increase followed two consecutive monthly decreases.
  • Shipments of manufactured durable goods in June, also up following two consecutive monthly decreases, increased 0.1 percent.
  • Unfilled orders of manufactured durable goods in June, up following two consecutive monthly decreases, increased 0.1 percent
  • Inventories of manufactured durable goods in June, up twenty four of the last twenty five months, increased 0.4 percent.

Federal Reserve Bank of Dallas Texas Manufacturing Outlook Survey:

  • Texas factory activity declined slightly in July, according to business executives responding to the Outlook Survey.
  • The Production Index remained negative but rose for the second month in a row.
  • The capacity utilization index and the shipments index both increased but remain in negative territory, indicating contraction BUT the upward movement again this month suggests the pace of decline continued to slow.
  • The new orders index rebounded strongly and the growth rate of orders index also jumped.
  • Expectations regarding future business conditions improved notably in July.

From American Metal Market 7/28/15:

Caterpillar’s sales of mining equipment continued to trend downward in the second quarter as global customers bought less new equipment. “Commodity prices remained weak and mining customers continued to focus on improving productivity in existing mines and reducing their total capital expenditures…”

US raw steel output dropped 0.7 percent last week as mills operated at an ACUR of 72.8 percent. In the corresponding week last year mills operated at an ACUR of 79.6 percent. On the year, mills have produced approximately 50,000,000 tons at an ACUR of 72.5 percent. In the like period last year mills produced approximately 55,000,000 tons at an ACUR of 77.6 percent

Real GDP Increased in 2015Q2

Real gross domestic product-the value of the production of goods and services in the United States, adjusted for price changes, increased at an annual rate of 2.3 percent in the second quarter of 2015, according to the “advance” estimate released by the Bureau of Economic Analysis (BEA). In the first quarter, real GDP increased 0.6 percent. The “second” estimate, based on more complete data, will be released at the end of August.

The Midwest Economy Index (MEI)

It declined -0.02 in June from +0.20 in May, falling below zero for the first time since November 2012. The relative MEI fell to +0.09 in June from +0.41 in May. June’s value for the relative MEI indicates that Midwest economic growth was close to what would typically be suggested by the growth rate of the national economy.

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.