11272020Fri
Last updateWed, 25 Nov 2020 4pm

Leading Economic Indicators Up for Sixth Consecutive Month

The Conference Board Leading Economic Index (LEI) for the U.S. increased 0.7% in October to 108.2, following a 0.7% increase in September and a 1.6% increase in August.

“The U.S. LEI rose again in October, with widespread improvements despite weakness from housing permits and consumers’ outlook on economic conditions. However, the leading index has been decelerating in recent months, which suggests growth will moderate significantly in the final months of 2020, slowing down from the unusually rapid pace in Q3,” said Ataman Ozyildirim, senior director of economic research at The Conference Board. “Furthermore, downside risks to growth from a second wave of COVID-19 and high unemployment persist. While The Conference Board projects the US economy will expand in Q4, the pace of growth is unlikely to exceed 2.2% (annual rate).”


U.S. Industrial Production Up 1.1% in October

Industrial production rose 1.1% in October. The index has recovered much of its 16.5% decline from February to April, but output in October was still 5.6% lower than its pre-pandemic February level. After edging up 0.1% in September, manufacturing output increased 1.0% in October. The index for durable manufacturing stepped up 0.9%.

Small Business Optimism Unchanged, Uncertainty Rises

The NFIB Optimism Index remained at 104.0 in October, unchanged from September and a historically high reading. Four of the 10 components improved, 5 declined, and 1 was unchanged. Although all of the data was collected prior to Election Day, a 6-point increase in the NFIB Uncertainty Index to 98 was likely driven by the election and uncertain conditions in future months due to the COVID-19 pandemic and possible government mandated shutdowns. The uncertainty reading was the highest reading since November 2016.

U.S. Manufacturing Technology Orders Up in September

U.S. Manufacturing Technology Orders totaled $373.7 million in September 2020, an increase of 26.4% from August 2020, and the highest monthly total of the year, according to the latest U.S. Manufacturing Technology Orders report published by The Association For Manufacturing Technology (AMT). The September total decreased 3.2% from September 2019, and orders to date reached $2.68 billion, nearly a quarter lower than the 2019 YTD total.

“In addition to the positive numbers this month, we are now seeing the economic recovery reach a broader spectrum of the overall capital equipment market,” said Douglas K. Woods, president of AMT. “Manufacturing is ramping back up as production, shipments, and order levels continue to improve throughout most sectors. The high demand for mold-and-die products during the height of the pandemic led to reshoring portions of the industry’s output. Additionally, a strong housing market continues to expand demand for household appliances, creating backlogs that will keep production lines busy into the winter.”

U.S. Added 638,000 Jobs in October

Total nonfarm payroll employment rose by 638,000 in October, and the unemployment rate declined to 6.9%, the U.S. Department of Labor reported. These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the COVID-19 pandemic and efforts to contain it.

Manufacturing employment rose by 38,000 in October but is 621,000 lower than in February. Gains occurred in fabricated metal products (+7,000), primary metals (+6,000), and wood products (+4,000). Employment continued to trend up in food manufacturing (+6,000) and in plastics and rubber products (+4,000).

VALVE Magazine Print & Digital

Subscribe FALL20FREE SUBSCRIPTION*

• Print magazine
Digital magazine
• VALVE eNews
Read the latest issue

*to qualified valve professionals in the U.S./Canada

Looking for a career in the Valve Industry?

ValveCareers Horiz

To learn more, visit the Valve Careers YouTube channel to watch the videos below or visit ValveCareers.com a special initiative of the Valve Manufacturers Association

  • Latest Post

  • Popular

  • Links

  • Events

New Products