What we can take away from the Institute for Supply Management (ISM) index on manufacturing [Data Here]: overall, the U.S. manufacturing sector is continuing to expand significantly. The current index of 55.6 percent in July is 2.3 percentage points above the June figure and the highest reading since May 2022 (55.9 percent), when we were trying to recover from the COVID-19 shutdowns and supply chain problems.
PMI – The overall economy continued in expansion for the 21st month in a row. (A Manufacturing PMI® above 47.5 percent, over a period of time, generally indicates an expansion of the overall economy.) The New Orders Index expanded for the seventh consecutive month after four straight readings in contraction, registering 56.7 percent, up 0.7 percentage point compared to June’s figure of 56 percent.
The July reading of the Production Index (58.5 percent) is 6.3 percentage points higher than the 52.2 percent recorded in June and the highest figure since November 2021 (60.5 percent). The Prices Index remained in expansion (or ‘increasing’ territory), registering 71.1 percent, a 1.9-percentage point decrease from June’s reading of 73 percent. The Backlog of Orders Index registered 55 percent, up 4.5 percentage points compared to the 50.5 percent recorded in June.
The Employment Index reading of 52.8 percent is up 3.1 percentage points from June’s figure of 49.7 percent, putting the index in expansion territory for the first time in 33 months.” (source)
All that data and a couple of bucks will buy you a cup of coffee, but here’s what it means in common speak.
Overall, companies wanting to make products in the United States are expanding the manufacturing sector. However, they are running into a problem when trying to source the component goods and/or raw materials. The resource goods they need are constantly in a status of flux and the prices are unstable.
For large companies their supply chain management can deal with the short inventory issue through various sourcing networks using multiple suppliers. However, for smaller companies this is frustrating.
The manufacturing system is a network of complex suppliers who make component materials needed for the core product. In order to get really successful, the smaller manufacturing component goods need to start up inside the USA just like the larger companies who are producing a finished product.
This is why even during a manufacturing surge we end up importing a lot of goods on the front end of the transition. Absent a domestic supplier, industrial component products are heavily imported in order to manufacture the finished durable good.
It takes time, well, technically its never been tried – so, no one is sure, but it takes time for all of the component manufacturing to establish inside the USA in order to feed the component parts to the various manufacturers who depend on the sub-sourcing. This is the period we are in at the moment, and prices are fluctuating as people try to get their arms around costs here and abroad.
The 15 manufacturing industries reporting growth in July — listed in order — are: Printing & Related Support Activities; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Primary Metals; Nonmetallic Mineral Products; Transportation Equipment; Miscellaneous Manufacturing; Textile Mills; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; Wood Products; Plastics & Rubber Products; Furniture & Related Products; and Fabricated Metal Products. The only industry in contraction was Chemical Products.
[…] Commodities Up in Price
Acrylonitrile Butadiene Styrene (ABS); Aluminum* (32); Copper (13); Corn; Corrugated Products (4); Electrical Components (2); Electronic Components (7); Freight (5); Fuel* (5); Integrated Circuits; Memory Components (5); Metal Products (4); Ocean Freight (3); Oil Based Products (4); Paper Products (4); Plastic Based Products (4); Plastics (5); Printed Circuit Boards; Resin Based Products; Resins (6); Semiconductors (2); Soybean Meal; Steel (9); Steel — Cold Rolled; Steel — Hot Rolled (7); Steel — Stainless (6); Steel Products (8); and Sulfur Products (4).
Commodities Down in Price
Aluminum*(2); Fuel* (2); and Polypropylene Resin (2).
Commodities in Short Supply
Aluminum; Copper; Electrical Components (13); Electronic Components (17); Integrated Circuits; Memory (7); Oil Based Products; Printed Circuit Boards; Rare Earth Components; Semiconductors (5); Steel; Steel — Hot Rolled (2); and Tungsten Products.
The blue-collar jobs are expanding significantly. There is massive upward pressure on wages for blue collar workers as the manufacturing sector continues to expand.
Maybe. Difficult to follow.
IMO folks will not see many positives until Iran is really settled so firmly that even PDJT stops talking about it.
Difficult to follow
Appears PDJT’s economic policies are working.
Pray for the average American voter to exercise wisdom in November. It’s a big ask but, hey, a man can hope!
The first thing that they are going to see are high gas prices.
Remember those Biden “I did this” stickers? Now we get to see Trump versions.
Iran needs to be settled. I keep trying to understand what exactly Promethean Action’s definition of done is in Iran as they have the closest thing that I can find for a logical rationale for this war.
That being said, I don’t bet against Trump.
Economic Fury. Susan Kokinda defined what this is doing, over the weekend. Scott Bessent is the more powerful ‘weapon’, removing the IRGC’s capability of funding the terrorist groups.
Yes, I saw that video. That tells me “how” it being done.
I want to know what “done” looks like – e.g. who is in charge of Iran? Does Britain end bankrupted? Who controls the oil out of the gulf? Etc.
Iran is a pawn of the old system. The old system has pawns that act as thorns in the side of the New American (Hamilton) System.
Trump is fighting the puppet master, Iran is just the face of the puppet master.
The players of the old system and those that benefit from it will stifle anything DJT team does or tries to do.
Thank you, I get that, but what does “done” look like?
There are too many Democrats and Independents that don’t pay any attention, so when they go into the voting booth they just vote the D, even if a socialist or communist candidate. Then when they win, these people are the first ones to complain about their policies.
It is not just that they don’t pay attention. When they do pay attention, it is only to the MSM and that despicable lot will never mention a word of any good economic news, or of any good news, that might reflect favorably upon President Trump or MAGA candidates.
One perhaps off-topic thing to mention about Independent voters is that they are not some monolithic group somewhere in the center between Left and Right just waiting to be swayed one way or the other. They span the whole spectrum. Many do pay attention to more reliable news outlets. Many are simply unhappy with both of the parties and prefer not to be registered as one or the other. Good pollsters know this, but not all are good or reliable.
President Trump and his supporters trying to pull the U.S. back from falling over the cliff and uniparty Congress is doing everything in it’s power to push the U.S. off the cliff.
Congress is a domestic terrorist organization.
One of several sadly
“For large companies their supply chain management can deal with the short inventory issue through various sourcing networks using multiple suppliers. However, for smaller companies this is frustrating.”
This here is the downstream effect of shutting down the economy unnecessarily: all Fauci and the IC!!
Notice how there is less product “flavor” choices within in brands now?
I wish the multi-verse were a thing, I would love to see what the US economy would like today had Trump not been stopped in 2020.
This news is all about President Trump changing America from a Service Driven Economy (lower wages) back to a Manufacturing Economy (higher wages). That is great news.
Of course the production of component parts used by manufacturers has lagged behind, but that problem will fix itself as more manufacturers move back to the United States and as American manufacturers build more plants.
The supporting production will expand as the demand for their component parts increases.
President Trump is building the foundation for the greatest era of manufacturing ever seen in human history—right here in America.
The ripple effect from this surge in manufacturing will greatly increase the standard of living for all Americans.
WINNING!
God bless President Trump!
My son quit college after his freshman year. I was suspect but then he said he wanted to go to welding school.
So off I sent him. He graduates in December and it looks like his timing might be ideal.
As the mother of a son who has a degree which was taking him nowhere, who then joined the Navy where he discovered that he had an aptitude for all things electrical and mechanical and upon coming out became an industrial HVAC specialist which has provided him and his family an excellent living, I can assure great things will come for your son.
Timing is indeed all.
I wish him nothing but contentment with his chosen profession and the very best of luck and prosperity.
The portents are exceedingly promising.
Thank you friend. Very encouraging words!
Stand back and watch, dear sir. It will happen 💕
I don’t know where you are, but the men that do underwater welding make an absolute fortune.
I’m near the seacoast so there is heavy demand for that skill in the boat building/repair industry.
If making a pile of cash is appealing to your son, that is the place to move too.
<I was suspect but then he said he wanted to go to welding school.>
It’s great that your son tells you his plans about welding…
It’s a great way to bond 🙂
D’OH!
😏
🤗❤️🤣
Sounds like he very smartly picked up on the message being sent for the past few years from mikeroweWorks Foundation and the national “network” of similarly-focused groups promoting the trades and associated skillsets.
Good for him. Smart young man.
Blue collar workers, their families, their communities, the spirits, their hopes to leave their progeny better off and secure were torched by NAFTA, reduced to metaphorical ashes.
One man who understood and withdrew from the Globalist Free Trade fire which burned them all to cinders…
That’s all it took…
The American Phoenix is rising.
Well, in the people’s republic of Il, sales tax just jumped on Saturday.
depends on where you live, Chicago and now the collar counties, will pay 10.5%.
Not shopping except for necessities.
Trump cannot govern what the states do. One of the reasons for the disparity in gas prices is state tax.
It’s really too bad our do nothing republicans have to be whipped into helping the president.
It would be bad enough if they just stopped at “do nothing.”
Unfortunately, the RepubliCons are advancing into aggressive “Stop Trump” warfare.
The RepubliCons are truly our most dangerous enemy.
What’s worse is that they are impossible to whip into helping the President.
Now lets fix health care, reimbursements, grants, and other gimmie grants, along with hospital ownership. And how they finance their operations AND the ‘C-Suite’ bonuses.
Across the country, there are many hospitals in trouble, service lines and wages are reduced, except at the ‘C-Suite’ level, their wages are NEVER impacted..
Maybe hospitals are ‘in trouble’ for taking bribes to diagnose patients with covid, as well as indicating covid deaths at $35,000 each??
This video from Promethean wraps up the global picture, from Ceuta, manufacturing, globalism, etc. 18 minutes that are really worth watching.
Excellent! Thank you for posting that.
“The blue-collar jobs are expanding significantly.”
It is exactly a one month trend. That is not data. It is a data point.
That said, I support President Trump 100%.
The Iran problem is not going away until there is capitulation.
President Trump needs to start making life hard for ordinary Iranians.
Because our military isn’t using total war as it should.
Bridges, power plants, water infrastructure. The nutjob Mullahs won’t stop until they can’t eat!
But that won’t happen under Trump. He is the peacemaker, even if it costs him dearly.
The mid-terms will happen under $4+ a gallon gas.
This will not turn out good for us. Our voters are stupid. Our system is rigged.
MAGA is being flushed down the toilet by the month. I wish I believed otherwise.
There are also differences by state, for example, Daimler Trucks is transferring final truck assembly from the now to-be closed Garbageville / Riot-town Freightliner truck plant and moving it to North Carolina. It now only leaves their North American headquarters in that ludicrous new 15 story office building they put up on the Willamette river sand and gravel sediment of Swan Island.
German morons. Portland’s commercial real estate has dropped 70% of it’s value and they only built the building 10 years ago.
Or-gone, Warshington and Californicate continue to lose companies and jobs to go east of the Rockies.
The demo national socialists are still clueless as to why this is happening.
It’s good news.
I cannot express how sick of buying Chinese junk I am- and that in so many cases this is all that is available.
We can’t get there fast enough, I have a few large ticket items to purchase that I’ve actually put on the back burner hoping for a made in America option to come along.
Trump transferred Pell Grants and paid OJT to trades. Welders, Electricians, Construction, HVAC, Auto Repair, CNC Machine (don’t believe Ai hype..they need humans). College no longer needed.
To the Low IQ Voter, the only thing which matters are gasoline prices and food prices.
Quality meat prices are still sky high, as is gasoline/diesel and heating oil.
Trump Needs to call in a solid from his ME buddies and have them flood the crude market and get it down to
50-60/bbl. He needs to do this now -Otherwise the midterms are toast, and his legacy will be in tatters.
He keeps harping on the oil companies to lower pump prices, when it’s the Gulf producers, Saudi, Kuwait, etc he needs to be hammering on.
Quiet please. Otherwise the deep state will unleash another economy killer like they did with plandemic to take down the rest of Trump’s term. Bibi has been doing a fine job of that so far.
The biggest blind spot in the current economic development model the administration is pursuing is improving the environment for small businesses, entrepreneurs.
Historically small businesses have been the biggest, most important driver of the US economy, innovation, competitiveness. Accounting for over 80% of all jobs and wealth creation up into the early 2000’s.
That number has been eroded due to a cavalcade of reasons. Overregulation, legal, compliance costs, environmental, tax system, Scamdemic shutdowns, consolidations, anti-trust waivers, etc.
And offshore labor expense saving systems. Slavery isthe most profitable economic model throughout history, illegal in the US, West, but…in China/India/Malaysia/Vietnam, etc… Small businesses can’t compete.
Bringing large manufacturing concerns back to the US is important, headlines that say “80,000 new jobs” are sexy. Sexier than “Joe’s Tools hired five new employees.” Even if 200,000 Joe’s Tools are able to hire five new employees creating 1m new jobs.
It would be wise and beneficial economic policy to remove barriers from entrepreneurship. Deregulate, change tax system, allow intergenerational nontaxable transfer of ownership again, eliminate rules that big corporations lobbied to create as barriers to entry for competition.
Small businesses are less governance, less controllable by centralized authoritarian governing models. The consolidation of all things into 2-3 major corporations in any given industry enthusiastically get into lockstep with political edicts.
Small business-driven economy is the best way to protect and defend liberty and the US’s world-leading economic engine. The fascination with generating the sexy headlines is short-sighted. Makes sense to the oligarchs and Wall Street. Turns Main Street into dilapidated ghost towns and homeless camps.