Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/57223487ee13e98b2e584a13079e4eda.jpg)
Manufacturing Indices Show Mixed Results
Written by Sandy Williams
June 27, 2017
Two Federal Reserve manufacturing indices came out this week showing a contrast between business conditions in the Richmond and Texas regions.
Federal Reserve Bank of Richmond
Manufacturing in the Fifth District improved in June with more manufacturing executives expressing optimism for the next six months. The composite index rose six points to register 7 on strength from new orders and shipments. Inventories were reported as higher for both finished goods and raw materials. Current pricing moderated for the month but manufacturers expect input prices to increase in the next six months. Employment indices were mostly steady although the wage index dropped to 9 from 23 in April. Employment ranks are expected to swell during the next six months.
Federal Reserve Bank of Dallas
Texas manufacturing expansion slowed in June. The production index fell 11 points to 12.3, along with declines to single digits for new orders and growth of new orders at 9.6 and 4.7, respectively. Shipments declined from a May reading of 24.7 to 8.5 this month. Growth moderated for prices paid and received. The raw material inventories index increased 10.3 points along with a slight increase in finished goods inventory. Employment levels were up slightly from an index reading of 8.3 to 9.6. The general business index lost 2.2 points to register 15.0.
Texas manufacturers were somewhat less optimistic in June about future business conditions. New orders are expected to pick up but most future indices showed declines from last month.
Manufacturers of fabricated metal products in Texas had the following comments:
- We are seeing extremely strong price competition for our products, with increased foreign pressure for the project work. Wage pressure is coming from the continued capital project work along the Gulf Coast.
- We have experienced a lull in new orders, which seems to be the result of contractors digesting previous work backlogs. Having said that, there has been widespread dissatisfaction among contractors regarding the lack of progress on tax reduction and health care reform.
- Some projects are being let, finally. Here’s my take on the Texas economy: If you won the bid and have the business, you are busy. If you didn’t get the bid, you are not. Meaning, this is not a rising-tide economy where everyone is busy—it is spotty and super competitive.
- Energy sector sales have remained strong since fourth quarter 2016. Quote activity for the industrial sector is improving.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/empire_state_1-scaled.jpg)
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.