US Manufacturing Expands At Fastest Pace Since February 2015

Investors Business Daily ^ | 7/01/2016 | ED CARSON

[expat_panama]

U.S. manufacturing expanded at the fastest pace in more than a year, according to the Institute for Supply Management on Friday.

ISM's nationwide gauge rose 1.9 points to 53.2, the strongest since February 2015. Economists had expected a slight rise to 51.5. It was the fourth straight reading over 50, signaling expansion.

The new orders and production subindexes showed solid gains. The employment measure rose 1.2 points to 50.4, the first positive reading of 2016. The export orders gauge rose to its best level since late 2014.

A weaker dollar in much of 2016, along with a stabilizing energy sector, is providing some support to U.S. factories. But the dollar's sharp post-Brexit rise against the pound and many other currencies, along with the prospect for weaker U.K. and European growth, could be headwinds going forward.

Markit's final Purchasing Managers' Index for June manufacturing was 51.3, up from 50.7 in May but just below the preliminary flash reading of 51.4.

[expat_panama]

So our big question is what's going on with US manufacturing, given the fact that leftwing morons are saying it's soaring higher than ever w/ jobs galore while rightwing kooks are crying that the U.S. doesn't make anything anymore and every single U.S. factory worker is unemployed.

Here's the situation:

U.S. factory output us not even up to the 2007 peak, but it's almost there.  This means America's growth in industrial production (which had been growing steadily for 97 years) got stalled eight years ago and has been stuck/falling.

It's true U.S. manufacturing is just about at an all time high.  It's also true that we got the same number of US factory workers we had in 2007 so no jobs were put packaged, crated, gift wrapped, and shipped to China last Christmas. 

 

What I see is that this is not good enough and we used to do a lot better before '08.

[Nachum]

Figures never lie, but liars figure...

Factory Orders Collapse To Longest Streak In US History

http://www.zerohedge.com/news/2016-07-05/wtf-chart-day-factory-orders-collapse-longest-streak-us-history

[DoughtyOne]

Tens of millions of Chinese citizens are manufacturing things for the citizens of the United States to buy.

Those items that could be manufactured in the United States are not being manufactured in the United States.

We have 90 million able bodied people out of work today in the United States.

None the less you determine no jobs were lost.

Are you aware that jobs traditionally grew by 9.75% during each four year presidential term from 1960 to 2000?

Are you aware that they have only grown by 0-2% during the presidential terms since 2000?

Since 2000, the fastest growing sector of job growth has been “service” jobs.

Any of this registering with you?

You folks who think trade hasn’t hurt us are helpless.

[Snowybear]

Zero Hedge is a website for fools.

[expat_panama]

Hi guys!  Some kind of problem logging on here this morning but all appears well now.  Major stock indexes seem a bit off atm tho before-the-bell futures looked rosey  --but nobody cares 'cause silver's been over $20 per flippin' oz!!!!  OK, so it's right now at $19.82 (everyone loves taking profits) so maybe we're looking at levels we ain't seen in two years.  Who knows, maybe another $47 peak like we had in 2011?

Reports today: FOMC Minutes and Factory Orders, and ...

Brexit Is Lehman Moment for European Banks - Mark Gilbert, Bloomberg
Rich Gain Most From Housing Subsidies - David Meni & Ezra Levin, Nation
How Protectionist Rhetoric Endangers U.S. - Milton Ezrati, Nat'l Interest
Bashing China Doesn't Make You a Friend of Labor - Paul Krugman, NYT
Sen. Warren Declares War on Amazon, Apple & Google - Editorial, IBD
Let's Ditch the Fed For Right Reasons - Jonathan Newman, Mises Institute
'Too Big To Succeed' Is Today's Problem - Richard Rahn, Washington Times

[expat_panama]

liars figure...  http://www.zerohedge.com/n

Exactly, anyone who believes sites like Zerohedge is a moron.

[central_va]

So how much better would this anemic performance be if the USA had not stupidly offshored 55,000 factories since 2001?

[bert]

The time frame you reference includes a long period during which the world was recovering from WW II. We were at a serious advantage in that we had productive capacity the rest of the world lacked.

As that situation reversed, We lost the advantage.

There are other factors but to hold that the conditions in say 1965, only 20 years after the very destructive war that destroyed infrastructure and most importantly people is historical error of judgement.

Those historical circumstances coupled with the incalculable benefits of computers and instant communication to virtually everywhere compounded by growth killing regulation have produced change in what we can do going forward.

Oh, and it is not just China. We must compete with many nations peoples other than just the Chinese

[DoughtyOne]

Well, don’t let hard cold facts stand in your way.

[Sequoyah101]

The US has been flat for almost a decade now. The only “growth” was to recover back to about where it was. That took until 2012. Since then the economy has been hanging on by a thread.

I can’t post a picture but for the curious look here at energy consumption of all kinds in the US. Basically it is this.

1) Not recovered from better days.
2) Using less and wasting more energy

So much for recovery and so much for conservation and so much for the environment.

To believe anything this administration tells us you have to suspend disbelief and common sense.

The data I refer to. Just pictures and numbers, easy to understand really. Look at total use and waste on the right:

https://flowcharts.llnl.gov/energy.html

[Sequoyah101]

And so is BI in my view. Both will print anything just like Oilprice will. ZH is just a propaganda shill.

[expat_panama]

I can’t post a picture

Sure you can, and you just did --by telling me about it [click to enlarge]:

Dang, it's neat! A lot of things surprised me, things like how coal may be big in making electricity but it's small potatoes in the big picture.  Note what a nothing waste that silly solar is.

[citizen]

What is rejected energy? Over-capacity?

[RegulatorCountry]

The time frame you reference includes a long period during which the world was recovering from WW II. We were at a serious advantage in that we had productive capacity the rest of the world lacked.

This is often repeated as fact, but it isn't. The US economy was not booming due to exports in the post-WWII years. Exports were around 5% of GNP for the majority of those years, and never exceeded 6.5%. The post-WWII boom in the US was driven by domestic demand almost in its entirety.

[Sequoyah101]

Thanks. I am not an HTML maven and don’t use it enough to be practiced.

Yes to your observations but also the increase in wind since ca 2008 though the contribution is still paltry.

There are some real eye openers for those who will study this information.

What stuck out to me is the huge amount of Rejected Energy (WASTE) and how it is growing. Efficiency is going DOWN not up. Low cost encourages waste of course.

Notice how little petroleum goes into residential use even though there is so much screaming about fuel oil price.

Industrial use is 80% efficient while all others range from 21 to 65% efficient with their throughputs.

All natural gas is being used now. If coal is to be replaced where will that steady replacement supply come from and at what price?

Thanks again for posting the picture from my link.

[Sequoyah101]

BTW, silly solar and wind are both just playthings provided at an effective taxpayer expense. Green programs have fake cost to benefit ratios. IF they made economic sense there would be no need for taxpayer subsidies.

Other conutries employ their capital to make more capital. We employ ours, by gubment force, to feel good. We are in the harvest mode of our capital assets while all others are improving their farms.

[RegulatorCountry]

https://fred.stlouisfed.org/graph/?g=9NB

[RegulatorCountry]

[expat_panama]

Over-capacity?

Well, I thot it was simply % not used, like waste heat from the radiator etc.

[expat_panama]

...ZH is just a propaganda shill.

That's my take too.  It's a big favorite w/ the drama queen set and there are lots of those types on the FR.  I get so tired of the morons here who prefer personal vendettas to policy issues. I usually just tune them out as if they're not here.