This Manufacturing Economic Report examines the state of global manufacturing for the week of August 8 – 12 and predicts the following week.
In the second quarter, spending on goods was one of the brighter spots in an otherwise disappointing real GDP report, with personal consumption expenditures up 4.2 percent at the annual rate. Last week, we learned that retail sales cooled as we began the third quarter. Retail spending was unchanged in July, with Americans pausing in their consumer spending growth after jumping 0.8 percent in June. This suggests that the public was more cautious in July, likely on uncertainties in the global economy and some soft economic data. However, consumers have increased their spending at a modest pace over the past 12 months, up 2.3 percent since July 2015 or, more positively, up 3.5 percent excluding gasoline station sales. Still, consumer confidence has remained muted, even as sentiment ticked marginally higher in August in preliminary data. Beyond global headwinds, the University of Michigan and Thomson Reuters cite political uncertainties as a concern for consumers.Manufacturing, News