October 2015 Economic Indicators
Melanie Garza - Director of Strategy & Growth
Industrial Production Flirts with Flat Line
Growth in the manufacturing sector was dismal in September. The PMI index registered at 50.2% last month, giving it a growth rating by the Institute for Supply Management; however, the index has fallen steadily since June and is now at its lowest point since May 2013. In October 2014, PMI was 57.9.
The New Orders index also measured at 50.1%, falling 1.6% from August. The Production Index dropped 1.8% in September to 51.8%.
The nine industries reporting growth in production during the month of September — listed in order — are: Printing & Related Support Activities; Nonmetallic Mineral Products; Furniture & Related Products; Food Beverage & Tobacco Products; Miscellaneous Manufacturing; Paper Products; Plastics & Rubber Products; Chemical Products; and Fabricated Metal Products.
GDP Q2 Performance Tops Expectations
The U.S. economy exceeded expectations in the second quarter. The Commerce Department reported that GDP rose 3.9% versus the original estimate of 3.7%. The upswing is far above the first quarter performance of just 0.6%. However, 3rd quarter estimates are expected to fall and range from 1.8 to 2.1%.
The rise was driven by consumer spending, construction, nonresidential, and residential fixed investment, along with state and local government spending.
The price index for gross domestic purchases increased 1.5% in the second quarter.
Questions or comments? Please contact Melanie Garza at mgarza@teamCOACT.com.