NAM: Manufacturing Increases To All Time High Of $2.768T In Q2 The U.S. economy shrank 0.6 percent at the annual rate in the second quarter, extending the decline of 1.6 percent in the first quarter, according to Chad Moutray, Ph.D. and Chief Economist at the National Association of Manufactur- ers. The current forecast is for 0.8 percent growth in real GDP in the third quarter, with 1.6 percent annual growth in 2022. In 2023, the outlook is for 1.0 percent growth, but that forecast has sizable downside risks. Indeed, more than 63 percent of respondents to the NAM Manufactur- ers’ Outlook Survey predicted there would be an official recession in 2022 or 2023. Real GDP in the manufacturing sector fell by an annu- alized 8.5 percent in the second quarter, serving as a drag on growth in three of the past four quarters.
With that said, manufacturing value-added output in- creased to $2.768 trillion in the second quarter, an all- time high. Manufacturing accounted for 11.0 percent of value-added output in the U.S. economy in the second quarter, the highest percentage since the fourth quarter of 2019. Yet, real value-added output in the manufacturing sector decreased for the second consecutive quarter from a record pace at the end of 2021, as expressed in chained 2012 dollars, suggesting that higher prices were inflating the record-setting nominal output data. New orders for durable goods declined 0.2 percent in August, edging down for the second straight month. Ex- cluding transportation equipment, new durable goods or- ders increased 0.2 percent to a record $180.7 billion. On a year-over-year basis, new durable goods orders have in- creased 8.8 percent since August 2021, or 6.1 percent with transportation equipment excluded. Core capital goods—a proxy for capital spending in the
U.S. economy—jumped 1.3 percent to a re- cord $75.6 billion in August, with 8.8 percent growth year-over-year. Meanwhile, durable goods shipments increased 0.7 percent to a record $272.1 billion in August, with 10.8 per- cent growth year-over-year. Manufacturing surveys from the Dallas and Richmond Federal Reserve Banks were mixed in September, but with both showing declining new orders. Respondents continued to note challenges with inflation, recession worries, supply chain disruptions, long delivery times and workforce shortages. Wage growth re- mained elevated. The PCE deflator rose 0.3 percent in Au- gust. Energy prices fell for the second straight month, helping to moderate the headline in- dex. Yet, food costs increased 0.8 percent, continuing to rise solidly year to date. Exclud- ing food and energy prices, the PCE deflator increased 0.6 percent in August. Overall, the PCE deflator has risen 6.2 per- cent over the past 12 months, decelerating for the second month from the 7.0 percent year-over-year pace in June, which was the strongest since December 1981. Excluding food and energy, core PCE inflation was 4.9 percent in August, up from 4.7 percent year- over-year in July but down from 5.0 percent in June. The core PCE deflator was 5.4 percent year-over-year in February and March, both of which were the fastest paces of inflation since April 1983. The two measures of consumer confidence both reflected upticks in sentiment in Septem- ber. Americans remain anxious about inflation, even with some moderation (especially in gas- oline prices), and overall assessments remain lower than desired on economic uncertainties.
DESIGNS THAT INCREASE PRODUCTION
ASDI offers: • 40 years of experience with separators, cyclones, conveyors and more • Sequential, Zero-Defect and various types of Scrap Systems • Each system is guaranteed to meet customer specifications • T urnkey Systems-handling all grades of paper and paperboard • In ground and overhead return conveyor systems direct to balers • Replace your undersized or aging cyclone over a two or three-day weekend • Representing a complete line of shredders, wet scrubbers and filters • NF PA compliant systems, ISN Network
Air Systems Design Inc .
50 East Court Mandeville, La 70471
Ph: 985-875-7777 Fx: 985-875-7778
\
email: sales@airsystemsdesign.com • www.airsystemsdesign.com
16
www.boardconvertingnews.com
October 10, 2022
Made with FlippingBook Digital Publishing Software