ThomasNet News Logo
Sign Up | Log In | ThomasNet Home | Promote Your Business

Durable Goods drive up manufacturing in May.

Print | 
Email |  Comment   Share  
June 21, 2010 - According to Federal Reserve, manufacturing production increased by 0.8% in May, driven by 1.7% rise in durable goods production. Gains were widespread, with 9 of 11 industries increasing last month. Two of the fastest growing industries, wood products and furniture, are likely benefiting from end of homebuyer tax credit in April. Two industries that declined were aerospace, which tends to jump around from month-to-month more than other sectors, and electrical equipment and appliances.

Durable Goods Drive Up Manufacturing in May

(Archive News Story - Products mentioned in this Archive News Story may or may not be available from the manufacturer.)

National Association Of Manufacturers (NAM)
1331 Pennsylvania Ave. N.W.
Washington, DC, 20004

Press release date: June 16, 2010

The Federal Reserve reported today that manufacturing production increased by a strong 0.8 percent in May, driven by a 1.7 percent rise in durable goods production. The good news is that the gains in durable goods production were widespread, with 9 of the eleven industries increasing last month. Two of the fastest-growing industries, wood products and furniture, are likely benefiting from the recent end of the homebuyer tax credit in April, which is expected to have positive impacts on housing-related manufacturing sectors for several more months.

The two industries that declined were aerospace and electrical equipment and appliances. Because of the large nature of single-ticket orders and shipments in aerospace, this sector tends to jump around from month-to -month more than other sectors. And production has been very strong in recent months for electrical equipment and appliances, as consumers took advantage of state-administered federal government programs to purchase energy efficient appliances. Given that 17 of these state programs have ended as funds have been exhausted, the downturn in electrical equipment and appliance production last month was no surprise.

Separately, after four consecutive increases, nondurable manufacturing production remained unchanged in May, largely due to declines in chemicals and petroleum products that offset gains in other areas. While the drop in petroleum production was likely a breather from extremely strong growth during the prior three months, the decline in chemicals could be the first sign of spillover effects from slowing growth in Europe. One of the chemical sectors that posted a significant fall in output last month was pharmaceuticals , where exports, two-thirds of which go to Europe, account for about a quarter of domestic production. Given the fact that pharmaceutical exports also declined in April, today's report is another signal that weaker demand in Europe may be starting to have an effect on U.S. manufacturers.
Print | 
Email |  Comment   Share  
Contacts: View detailed contact information.


Post a comment about this story

(your e-mail address will not be posted)
Comment title:
To submit comment, enter the security code shown below and press 'Post Comment'.

 See related product stories
More .....
 See more product news in:
| Featured Manufacturing Jobs
 Other News from this company:
NACD and Associquim Sign Memorandum of Understanding
Good News on ACA Implementation - Kind of
Participate in Manufacturing Day - Mark Your Calendars for October 4!
Business Group Praises Bipartisan Introduction of Bill Preventing Costly and Unnecessary Regulation of Main Street Risk Management
Manufacturers Win in Fight Against NLRB Overreach
More ....
 Tools for you
Watch Company 
View Company Profile
Company web site
More news from this company
E-mail this story to a friend
Save Story
Search for suppliers of
Trade Associations

Home  |  My ThomasNet News®  |  Industry Market Trends®  |  Submit Release  |  Advertise  |  Contact News  |  About Us
Brought to you by        Browse ThomasNet Directory

Copyright © 2014 Thomas Publishing Company. All Rights Reserved.
Terms of Use - Privacy Policy

Error close

Please enter a valid email address