BUSINESS & ECONOMICS

Indicators of domestic manufacturing sector report downward trend for U.S. economy in September 2015

ECONOMIC INDICATOR (#6)  STORY: By Shraddha Gupta

A significant economic indicator for the U.S. economy is ‘Manufacturers’ Shipments, Inventories, and Orders’, which provides a broad-based, monthly statistical data on economic conditions in the domestic manufacturing sector. A recent survey, as of September 2015, showed statistics indicating that the entire segment was going through a downward curve.

According to the U.S. Census Bureau, new orders for manufactured goods in September, went down two consecutive months, decreased $4.7 billion or 1.0 percent to $466.3 billion, and followed a 2.1 percent August decrease.

Shipments, were down five of the last six months, decreasing $1.8 billion or 0.4 percent to $477.3 billion. This followed a 0.9 percent August decrease.

Unfilled orders, were down two consecutive months, which decreased $6.2 billion or 0.5 percent to $1,187.9 billion. This followed a 0.3 percent August decrease.

Inventories, also dropped down three consecutive months, decreasing $2.4 billion or 0.4 percent to $645.1 billion. This followed a 0.4 percent August decrease.

While the unfilled orders-to-shipments ratio was 6.88, down from 6.89 in August, the inventories-to-shipments ratio was 1.35, unchanged from August.

As per official statements, the data published in the survey is based on a panel of approximately 4,800 reporting units that represent approximately 3,000 companies and provide an indication of month-to-month change for the Manufacturing Sector.

The companies for which shipments data are currently reported represent approximately 61 percent of the total value of shipments for manufacturing establishments in the 2012 Economic Census, and these companies include almost two-thirds of the manufacturing companies with $500 million or more in shipments in the 2012 Economic Census.

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