The Institute for Supply Management (ISM) released their manufacturing review today highlighting continued expansion of the underlying economy.  The results today from within the overall manufacturing industry emphasize the 27th consecutive month of growth…. and a future-view that seems to be predicting much more.  Much more!

ISM Release […] Manufacturing expanded in November, as the PMI^® registered 59.3 percent, an increase of 1.6 percentage points from the October reading of 57.7 percent. “This indicates growth in manufacturing for the 27th consecutive month, led by strong new orders, production output and continued slowing supplier delivery performance,” says Fiore. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. (more)

Okay CTH, so take the business wonk-speak out of this – what does it mean?
Here’s the summary: Manufacturers are increasing new orders (making more stuff). Production outputs and employment within the manufacturing sector are still growing. Suppliers are still having a tough time filling material orders, but they are finding new and innovative ways to speed up shipments of raw material. However, despite the speed (increased efficiency in delivering the raw material), the backlog of requests is still growing (new orders exceed supply chain). Customer inventories are too low (hence the backlog for new stuff). Inflationary pressure still exists, but the rate of price growth is slowing (increased supplier efficiency). Manufacturing exports and imports are growing. The economy is expanding.
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The Bureau of Labor Statistics (BLS) releases the October 2018 jobs report and the Ju-Ju bones are jumpin’. A quarter million new jobs created, vastly exceeding all expectations. Every sector increased in jobs:
Total nonfarm payroll employment increased by 250,000 in October, following an average monthly gain of 211,000 over the prior 12 months. In October, job growth occurred in health care, in manufacturing, in construction, and in transportation and warehousing. (See table B-1.)
Health care added 36,000 jobs in October. Within the industry, employment growth occurred in hospitals (+13,000) and in nursing and residential care facilities (+8,000). Employment in ambulatory health care services continued to trend up
(+14,000). Over the past 12 months, health care employment grew by 323,000.
In October, employment in manufacturing increased by 32,000. Most of the increase occurred in durable goods manufacturing, with a gain in transportation equipment (+10,000). Manufacturing has added 296,000 jobs over the year, largely in durable goods industries.
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An interesting video was captured a few days ago showing a Mexican trucking company named EXPRESS SAN JAVIER, assisting in moving Central American invasion force to the U.S. border.

What is additionally interesting is the Mexican company holds a Department of Transportation (DOT) license for operations inside the U.S. DOT License #1202728
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President Trump delivers remarks during a meeting between federal and state leaders. The conference is held to emphasize coordination between federal officials and their direct contacts at the state level.

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You might remember when CTH shared the following wage growth estimate:

[…] I’m not going to dismiss the possibility we could see double digit increases in year-over-year wage growth in multiple economic sectors in several regions of the U.S. –link–

Trucking Company President Nicholas Hobbs is now saying he projects a twenty percent increase in wages for truck drivers due to extreme demand.  That’s MAGAwinnamins!
Secretary of Transportation Elaine Chao discusses efforts to address the truck driver shortage in America.

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Earlier today President Trump hosted a meeting with the key administration officials executing the workforce initiatives programs.  The programs include expanded vocational training, private-public partnerships for education, and expanded investment in skills training for a modern American workforce.
The National Council for the American Worker is the executive agency tasked with execution of the policies and working with various state and local officials to help increase the skills training for U.S. workers.  With a MAGAnomic expanding economy; and with all of the subsequent jobs growth; and with a revitalization of U.S. manufacturing; the workforce initiatives are keys to sustaining successful growth for American workers.

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What happens when the silent majority stand up in full force and elect a president entirely focused on advancing the interests of Main Street over Wall Street?  What happens when that President takes office and begins systematically instituting a comprehensive series of economic policies that are targeted to Make America Great Again?
The middle-class of America benefits.  That’s what happens.  And when economic, trade, and U.S. financial policy are focused to improve the outcomes for the middle-class, the entire landscape of beneficial outcomes within the U.S. economy shifts…. Bigly.

Express Pro Survey – America’s blue collar workers may be one of the most optimistic groups in the country today. According to a new study conducted by The Harris Poll and commissioned by Express Employment Professionals, 85 percent of America’s blue collar workers see their lives heading “in the right direction.”
Sixty-nine (69) percent also say their local communities are heading in the right direction, and 51 percent say the same about the country as whole.

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Today the Bureau of Economic Analysis presented the second estimate for the second quarter GDP growth.  The second review increased the growth upward to 4.2%.

Within the data (full pdf release w/ tables) there are several interesting aspects.

(1) The upward revision to nonresidential fixed investment was mostly accounted for by investment in software. (2) Imports, which are a subtraction in the calculation of GDP, were revised down. Within goods, the downward revision was widespread, the largest contributor was petroleum.
In addition to presenting revised estimates for the second quarter, today’s release presents revised estimates of first-quarter wages and salaries, personal taxes, and contributions for government social insurance. Wages and salaries are now estimated to have increased $122.5 billion in the first quarter of 2018, an upward revision of $0.4 billion.  (source data)

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The images are jaw-dropping.  Dozens of vehicles plunged well over a hundred feet when a massive section of an elevated/suspension bridge collapsed in Genoa, Italy.  The death toll continues to grow (currently 35); and incredibly there were/are actual survivors being pulled from vehicles.  The bridge was built in 1967, and there was a very bad storm at the time of the collapse. An eye witness stated he saw a direct lightning strike on the support tower just prior to the moment of failure.

According to the U.K. Daily Mail approximately 35 people were killed and there are an unknown number of missing-feared dead, after the Genoa Italy bridge collapse.  The images of twisted steel and concrete debris into a river and an industrial park are horrific. Thankfully, there was almost no-one working at the industrial park due to holidays.
The vehicles that fell off the bridge dropped approximately 150 feet below along with the concrete and steel of the structure.  Rescue workers are working to try and locate any possible survivors who would be trapped in the rubble.
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Today U.S. Trade Representative Robert Lighthizer announced the second tranche of tariffs on Chinese imports (full list pdf below).
The 25% tariff mostly includes chemical compounds and material parts used in the manufacture of finished goods.

Washington, DC – The Office of the United States Trade Representative (USTR) today released a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the U.S. response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property.  This second tranche of additional tariffs under Section 301 follows the first tranche of tariffs on approximately $34 billion of imports from China, which went into effect on July 6.
The listcontains 279 of the original 284 tariff lines that were on a proposed list announced on June 15.  Changes to the proposed list were made after USTR and the interagency Section 301 Committee sought and received written comments and testimony during a two-day public hearing last month.

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