1. Executive Summary of Significant Event for week ending
September 16th, 2016.
WeeklyEXSUM@gmail.com
Twitter: @WeeklyEXSUM
The most significant news of Executive-Level interest for the week - is the cumulative .4% drop in US
Industrial Manufacturing 1.
Background: On September
15, the US Federal Reserve
reported a .4% drop in
Industrial Manufacturing 2.
This is the largest drop
since March 2016, and
counters economists’
prediction for a .2% drop in
August3. The six month
overall manufacturing
average is +.016%, and the following top three industries, which report expansion, include4
:
1. Printing & Related Support Activities
2. Nonmetallic Mineral Products
3. Computer & Electronic Products
The following top three industries reporting contraction include5
:
1. Electrical Equipment, Appliances & Components
2. Apparel, Leather & Allied Products
3. Plastics & Rubber Products
Analysis: The six-month US Federal Manufacturing Output reports indicate a slightly unstable
cumulative output. However, the trend-line average is rising slowly. Against a backdrop of the
incalculable global concern of when the US Federal Reserve will raise interest rates – this month’s report
is not surprising and does not indicate abnormally threatening economic conditions.
Recommendation: Business decision-makers prepare for continued instability in manufacturing,
and subsequent US consumer purchasing reports, yet need not anticipate their industry to undergo
significant changes from its current trajectory indicators.
1
The manufacturing output, the output of all factories in a country, is a sub-set of industrial output. The industrial
output is the total output of all the facilities producing goods within a country. Defined by Financial Times,
http://lexicon.ft.com/Term?term=manufacturing-output
2
http://www.federalreserve.gov/releases/g17/Current/default.htm
3
http://www.marketwatch.com/story/industrial-output-weakens-in-august-2016-09-15
4
https://www.instituteforsupplymanagement.org/ismreport/mfgrob.cfm?SSO=1
5
ibid.
-1.2
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
March April May June July August
%INCREASEORDECREASE
MAR - AUG 2016: INDUSTRIAL MANUFACTURING OUTPUT
Total index Previous estimates