The U.S. Census Bureau and the U.S. Department of Commerce released on August 26/2013 a snapshot of the manufacturing economic activity in the United States.
Non-defense Capital goods, which may be the most significant account representing manufactures, dropped U$1.0 billion to U$73.6 billion for July 2013.
It basically means that Made-In-America products declined in sales by a billion last July (Made-In-America goods such as machinery for farm, industrial and construction, turbines, power transmission equipment, pumps and compressors, communication equipment, heavy duty trucks, ships and boats, office furniture, medical equipment and supplies, electrical components, appliances, electronic computer, photographic equipment, vending, metal working machinery, among others).
Durable goods represent a large section of manufacturing industries that apply “advanced manufacturing” techniques, which is seen as the revamping strategy for revitalizing U.S. manufacturing sector. The decrease accounts for 2.98% less value in shipments for the mentioned goods. United States’ economy started losing ground on manufacturing sector since roughly three decades ago. Pollard and Storper (1996)[1] have shown how losses in manufacturing jobs reached 20% in between 1977 to 1987. Such losses have become recently a big concern for the U.S. government and policy makers.
Good news is in the shipments of motor and vehicle parts, which showed an increase of 1.39% from May’s shipments. The net value went from U$44,499 in May up to U$45,117 billion in July 2013. Electric equipment and appliances did not show substantial change and were roughly stable during the same period. On the other hand, Defense capital goods plunged shipments in 4.28% from May. Computers and electronic products reduced its shipments in 3.23% from June; however, Computers and electronic products are approaching May’s same figures – compared to May, computers showed a decrease of 2.18%.
More data information in the following link:
[1]Pollard, J. and Storper, M. (1996). A tale of twelve cities: metropolitan employment change in dynamic industries in the 1980’s. Economic Geography. Vol. 72. No. 1
Categories: Macroeconomics
