May saw the first increase in the Purchasing Managers’ Index (PMI) since February. Even accounting for the modest PMI dip in March and April, the progression of the index, since the recent low of August 2016, has been impressive. It suggests sustainability of moderate improvement in factory sector growth.
h the 6,000 new factory-sector jobs in April, manufacturing employment has now increased for five consecutive months, with an average of 14,200 new jobs gained per month. This is an impressive turnaround from a particularly weak period. Overall, this is the most convincing evidence that the broad manufacturing picture is starting to show some real improvement from years of weakness.
Stating “near-term risks to the economic outlook appear roughly balanced,” the Federal Open Market Committee (FOMC) elected to keep the target range for its influential federal funds rate between 0.75% and 1%, after a 25 basis point hike at the March meeting.
This morning’s release of the April manufacturing report from the Institute for Supply Management (ISM) adds to rapidly accumulating evidence that U.S. manufacturing is accelerating modestly from the 1% growth rut that it has been stuck in since 2012.
In his campaign, then candidate Trump threatened to “cancel” the Paris Agreement, in which the United States formally committed to reducing GHG emissions 26-28% by 2025. It seems the new administration is ready to make good on its word.
The March 2017 Manufacturing ISM® Report on Business®indicates another solid month for a manufacturing uptick. The ISM Purchasing Managers’ Index (PMI) came in at 57.2%, a 0.5 percentage point reduction from February 2017. The March data add to mounting evidence that U.S. manufacturing output performance is on track for moderate improvement up from the stagnant average growth rate of less than 1% that has plagued the factory sector since 2013.
Yet again, the labor market is the one strong player in an otherwise lackluster economic expansion. After a slowdown in the latter months of 2016, total net new job growth registered an unexpectedly strong 227,000 in January. With the current unemployment rate at 4.8%, this has provoked debates as to whether we have hit a level below which inflation and other expansion-threatening instabilities begin to appear.