Patrick Atagi

Here are the manufacturing sectors that have the highest percentages of small and medium-sized employment. Apparel, fabricated metal products, printing and related support activities, textile product mills, furniture and related products, wood products and leather top the list.

In a surprise move, the Federal Reserve cut the target federal funds rate to zero to 25 basis points. It will start purchasing $500 billion in Treasury securities and $200 billion in mortgage-backed securities over the coming months (e.g., a new round of quantitative easing).

The IHS Markit Flash U.S. Manufacturing PMI slowed in Feb. to its weakest rate of expansion in 6 months. The headline index dropped from 51.9 in Jan. to 50.8 in Feb. on eased new orders, output and employment. Exports fell at a faster pace, contracting for the 2nd straight month.

Manufacturing employment fell by 12,000 workers in January, dropping for the third time in the past four months. Indeed, over that four-month time frame, hiring in the sector was essentially stagnant.

New orders for manufactured goods rose 1.8% in December after declining by 1.2% in November. Yet, this was skewed by significant gains for both defense aircraft and parts and ships and boats. Excluding defense sales, orders fell by 0.6%.

Further proof of a tight labor market. There was someone from Census encouraging people to apply to be a Census-taker this morning at the Metro stop for jobs (albeit temporary) starting at $27.50 an hour.

Manufacturing employment fell 2,000 workers in September after rising by 2,000 in August. Employment for nondurable goods manufacturers increased by 2,000 in September, but this was offset by a decline of 4,000 workers among durable goods firms.

Conference Board: Consumer sentiment fell to a three-month low, with the headline index down from 134.2 in Aug. to 125.1 in Sept. Americans were less upbeat in their perceptions of both current and future conditions, with trade tensions and market volatility in the public’s mind.

Job openings in the manufacturing sector jumped to another all-time high, rising from 515,000 in June to 522,000 in July. This was led by strength in postings from durable goods manufacturers, with openings also increasing to a new record level, up from 322,000 in 331,000.

Manufacturing employment rose by just 3,000 workers in August. In addition, the data for the prior two months were revised lower, subtracting a total of 14,000 from June and July job growth in the sector.

ADP: Manufacturing employment fell by 3,000 workers in May, declining for the 2nd time in the past 3 months. This suggests that hiring has softened notably recently. To illustrate that point, manufacturers have added 40k workers YTD in 2019, down from 108k YTD last year.