November Manufacturing Numbers Show Industry Optimism for 2018
November manufacturing numbers showed expansion and positive output overall despite a slower growth rate compared to October. Manufacturers remain optimistic because most reported statistics either showed improvement or stayed within growth parameters for the month of November. Industrial production increased 0.9% since October nationwide for a total rise of 2.9% this year. Manufacturing output rose 1.3% as well. These statistics indicate growth in the country’s manufacturing industry for the 15th consecutive month, which contributes to the economy’s overall improvement. November manufacturing results can also be seen in manufacturing business outlook surveys taken throughout the country.
Dallas Fed outlook survey
After impressive post-hurricane numbers in October, Texas manufacturing continued to show growth in November but at a slower rate. The Federal Reserve Bank of Dallas conducts a monthly outlook survey with manufacturers statewide. The survey showed the highest growth rate of orders since 2010 at 18.1 points. The production index decreased by 10 since October but continued strong at 15.1. New orders and employment statistics also rose but at slower rates than October as well. Despite a drop in the general business activity index for November, the index gauging future numbers rose 0.5 points since October. Texas manufacturers remain optimistic for the coming months due to October and November number consistency and strength as they move further from the impact of Hurricanes Harvey and Irma.
Philly Fed outlook survey
On the other side of the nation, the Federal Reserve Bank of Philadelphia released its business outlook survey as well. This report covers statistics for Pennsylvania, New Jersey, and Delaware. The manufacturing index shows positive growth and expansion for the region for the 16th consecutive month. The three-month average increased from 23.5 to 24.8, which indicates overall expansion in the region. The employees index decreased from the record-breaking 30.6 last month to an encouraging 22.6 this month. The prices index also improved from 38.1 to 39. Those in the Philadelphia region saw continued manufacturing growth and stability during the month of November, and the positive outlook shows manufacturers are hopeful for the months to come.
Richmond Fed outlook survey
The Federal Reserve Bank of Richmond showed much improvement for manufacturing in its November report for the region. The manufacturing composite index increased from 12 in October to 30 in November. This improved the industry’s three-month average in Virginia to 20.3. Manufacturers in this region are also seeing stronger price growth as well. They remain optimistic about continued improvement for the next six months and coming year after such a rise in November.
During the coming year, U.S. manufacturers may continue seeing a steady rise in production, employment, and profits in various regions throughout the country. Overall, November manufacturing numbers followed the continuing positive trend, showing industry stability. Manufacturers remain confident current economic conditions and improvements in the manufacturing sector will mean great things for the industry in 2018.