US MFG Ain't So So Bad Actually It's Pretty Good...

[M.D. Holloway]

Industrial production decreased 0.5 percent in October after having increased 0.2 percent in September. At 114.0 percent of its 2002 average, total industrial production in October was 1.8 percent above its year-earlier level. Output in the manufacturing sector fell 0.4 percent in October. The output of utilities dropped 1.6 percent, primarily because of a decline in gas utilities; the output at mines fell 0.6 percent, reversing September's gain. Capacity utilization for total industry declined to 81.7 percent, a rate equal to its year-earlier level but 0.7 percentage point above its 1972-2006 average.

Business sector productivity grew at an annual rate of 6.7 percent during the third quarter of 2007, the largest gain since a 9.1 percent increase in the third quarter of 2003 (seasonally adjusted annual rates). Output rose 5.7 percent, the largest increase since a 10.4 percent rise in the third quarter of 2003. Hours of all persons engaged in the sector fell
1.0 percent, the first decline in the series since the second quarter of 2003, when hours fell 2.2 percent. When the third quarter of 2007 is compared to the third quarter of 2006, productivity rose 2.9 percent. This is the largest four-quarter increase since output per hour grew 3.4 percent from the second quarter of 2003 to the second quarter of 2004.

Productivity increased 5.0 percent in manufacturing in the third quarter of 2007, as output increased 4.5 percent and hours of all persons decreased 0.5 percent (seasonally adjusted annual rates). When the third quarter of 2007 is compared with the third quarter of 2006, productivity increased 2.8 percent, less than during any four-quarter period since the period ending with the fourth quarter of 2004, when productivity also increased 2.8 percent. In durable goods industries, productivity increased 6.1 percent in the third quarter of 2007. Output grew 6.7 percent and hours rose 0.6 percent. Productivity grew more slowly in the nondurable goods industries,
4.3 percent, reflecting an increase of 1.9 percent in output and a decrease of 2.3 percent in hours.

Output per hour of all persons in the nonfarm business sector rose 6.3 percent during the third quarter of 2007, the largest gain since a 10.4 percent increase in the third quarter of 2003. Output increased 5.7 percent and hours of all persons engaged in the sector declined 0.6 percent, as revised. Hours growth was the lowest since the second quarter of 2003, when hours fell 1.3 percent. In the second quarter of 2007, productivity had increased 2.2 percent, reflecting gains of 4.2 percent in output and 2.0 percent in hours.

Hourly compensation in the nonfarm business sector rose 4.2 percent in the third quarter of 2007. After a downward revision, second-quarter hourly compensation increased 1.0 percent; lower than a 4.4 percent rise reported on November 7. From the third quarter of 2006 to the third quarter of 2007, hourly compensation increased 5.8 percent, the largest four-quarter gain since an increase of 6.5 percent from the fourth quarter of 1999 to the fourth quarter of 2000. When the rise in consumer prices is taken into account, real hourly compensation rose 2.3 percent in the third quarter of
2007 and fell 4.7 percent in the second quarter.

As in the business sector, nonfarm business unit labor costs decreased 2.0 percent in the third quarter of 2007 due to the upward revision to productivity and the downward revision to hourly compensation. Nonfarm business unit labor costs also declined 1.1 percent in the second quarter.
The implicit price deflator for the nonfarm business sector, which reflects changes both in unit labor costs and in unit nonlabor payments, edged down 0.1 percent in the third quarter of 2007.

Hourly compensation in the business sector increased 4.7 percent during the third quarter of 2007. A downward revision reduced hourly compensation growth to 2.4 percent in the second quarter, lower than the 5.8 percent increase reported on November 7. From the third quarter of 2006 to the third quarter of 2007, hourly compensation increased 5.9 percent, the largest four-quarter gain since an increase of 6.7 percent from the fourth quarter of 1999 to the fourth quarter of 2000. Hourly compensation includes accrued wages and salaries, supplements, employer contributions to employee benefit plans, and taxes. Real hourly compensation, which takes into account changes in consumer prices, grew 2.7 percent in the third quarter and fell 3.3 percent in the second quarter.

Overall productivity is pretty solid, capacity is at 80% (which they basically have been since the 70's) and wages are increasing.

Say what you will, the ol US of A is still a strong leader in manufacturing.

[Dottore]

So where exactly can I purchase some of these fine American goods? They're not in any shops around here.