Texas Manufacturing Production Index Reached 12-Year High
The Texas manufacturing production index reached a 12-year high, according to the Federal Reserve Bank of Dallas Texas Manufacturing Outlook Survey. It reports Texas manufacturing activity rose markedly in May. The production index, a key measure of state manufacturing conditions, increased 10 points to a 12-year high (35.2) signaling further acceleration in output growth.
Most other indexes of manufacturing activity also indicated a sharp acceleration in May. Perceptions of broader business conditions were even more positive in May than in April.
The “second” estimate of 1st qtr. GDP came in at 2.2%. The “advance” estimate was 2.3%. The third and final estimate will be released in late June.
The US Census Bureau Advance Report on Manufacturers’ Shipments, Inventories and Orders for April 2018
- New Orders for manufactured durable goods in April decreased 1.7 percent. This decrease, following two monthly increases, followed a 2.7% March increase.
- Shipments of manufactured durable goods in April, down following 8 monthly increases, decreased 0.1 percent.
- Inventories of manufactured durable goods in April, up seventeen of the last eighteen months, increased 0.3% with fabricated metal products leading the charge.
The Conference Board Consumer Confidence Index increased in May following a modest April decline. Both the Present Situation Index and the Expectations Index improved as well.
Chicago Business Barometer for April Reports Rise
The Institute for Supply Management (ISM) released its Chicago Business Barometer for April and reports the Barometer rose to 57.6 in the month, snapping a three-month downward trend.
Business activity continued to rise at a solid pace in April with growth in firms’ operations up for the first time this year, albeit marginally.
While output levels rose in April, driving the upward move in the Barometer, order book growth continued to weaken.
Tariffs on Metal Products from Trade Partners
On Thursday the Wall Street Journal reported the US, starting Friday, will impose tariffs on steel and aluminum products from Canada, Mexico and the European Union, making them subject to the same tariffs as most other nations, said Commerce Secretary Wilbur Ross. This results from said countries not willing to renegotiate their current trade agreements with the USA. In my view, this is all fine and good. They will eventually come around, for their own good and trade will continue under more favorable circumstances for the people of the United States. It is about time.
US Raw Steel Production Notched a Gain Last Week
US raw steel production notched a 0.8% gain last week as mills operated at an ACUR of 76.3%. In the corresponding week last year mills operated at an ACUR of 73.7%. Thus far this year mills have produced prox 37,000,000 tons compared to the prox 36,000,000 tons produced in the like period last year.
The unemployment rate has dropped to 3.8%…an eighteen-year low, matching April 2000 as the lowest reading since 1969.
May 2018 Manufacturing ISM Report on Business Reports Expansion
The Institute for Supply Management released its May 2018 Manufacturing ISM Report on Business reporting economic activity in the manufacturing sector expanded in May and the overall economy grew for the 109th consecutive month.
The report was issued Friday by Timothy R. Fiore, CPSM,CPM, Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:
The May PMI registered 58.7 percent, an increase of 1.4 percentage points from the April reading of 57.3 percent.
Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 or above for the thirteenth straight month.
Excerpts from Review & Outlook in the past weekend edition of the Wall Street Journal
This is great and right on point:
Democratic governors have lambasted the GOP tax reform as “evil in the extreme,” to quote the moral stylings of California Governor Jerry Brown. But that isn’t stopping them from cashing in on the law.
Many liberal states have reported unexpected revenue surges. Tax revenues in California this year are $3.8 BILLION higher than the governors forecast. New York’s Comptroller reported last month that tax collections have surpassed the state’s February forecast by $315 million. Even Connecticut raked in $1.3 Billion more than its pie-in-the-sky projections.
Corporate tax revenues are booming thanks to growing profits and, though it’s still early, businesses repatriating billions in foreign income.
The Trump Administration’s deregulation and tax reform have unleashed animal spirits, which has increased stock values and capital gains. These revenues are volatile, but the serendipitous surge was a godsend for Connecticut. Without the revenue spike, the state would have hit its debt limit and may have had to cancel school construction projects.
Remember how Democratic governors wailed that the limit on the state-and-local tax deduction would slam their taxpayers? Yet many are now happy to pocket an incidental increase in state tax revenues. They can soak the rich without actually raising taxes.
Rather than invent convoluted schemes to reduce their taxpayers’ federal tax burden, Democrats ought to cut their own.
Trade War
I am so tired of hearing the term “trade war.” The US and the EU together, built the World Trade Organization (WTO) three decades ago to promote and regulate free trade and cooperated in the early 2000’s on efforts to modernize it. But they didn’t.
There has been plenty of free trade and a lack of FAIR trade in the global economies with EVERYONE benefiting from trade deals…EXCEPT the United States which has, for decades, given and given and given and have received little in return. Past politicians all chose not to upset the apple cart even though they were well aware that the US was being screwed royally.
Now comes President Trump, who says “NO” this is no longer acceptable, we want, and will demand FAIR trade negotiations with our business partners. Tariffs on steel and aluminum will only level the playing field for US industry. The costs will be passed on, more Americans will become employed and earn increasing wages which they will spend on their day to day living, everyone working and happy.
The important point here is to level the playing field for American industry. To continue removing burdensome regulations off the backs of American businesses. Our trading partners are screaming foul only because they have had the long end of the stick for so damned long…and they well know it. Our country can ill afford to continue in that manner going forward.
The President is correct in standing firm on his desire to conduct FAIR trade with our partners. For all their whining, what will they do without the American consumer? Not much. Buck up fellas, it really is time to “Make America Great Again!”
Infrastructure X (Keystone & Dakota pipelines) Regulation Reform XX 1 in 2 out
Individual Tax Reform XX Entitlement Reform
Business Tax Reform XX Education Reform X
Healthcare Reform Veterans Administration Reform X
Rebuild our Military X Trade Reform X
Secure our Borders (The Wall) XX Lead the world from the front XX
Help for the poor XX Drain the swamp X as we speak
Peace through unmatchable strength Support Israel X
Destroy ISIS XX Extreme Vetting XX
Conservative Supreme Court nominees XX American Jobs XX
I will track these campaign promises and will check them off as each is accomplished adding those I have missed as they become apparent. This is quite an agenda and will be difficult to achieve all in one term but I believe the American people are behind him and know these things need to be done. Now, if he can get our legislators to support him instead of fighting him….
“MAKE AMERICA GREAT AGAIN”
Have a great weekend…. God bless America!
Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.
By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.
TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907
In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”
