Economy
Manufacturing Sector Loses 6,000 Jobs in March
Written by Sandy Williams
April 6, 2019
The U.S. manufacturing sector lost 6,000 jobs in March primarily due to employment losses in the auto industry. In February, the sector gained 1,000 jobs, but was far below the average of 22,000 jobs gained per month in the prior 12 months.
Alliance for American Manufacturing President Scott Paul said of the latest employment figures:
“The disappointing manufacturing jobs number for March tells an all-too-familiar tale for factory workers: Plant closings have devastating impacts. The General Motors shutdown will continue to have a ripple effect throughout impacted communities and suppliers, in addition to the thousands of autoworker families facing uncertain futures.
“There are some things the president and Congress can do right now to brighten the days ahead for manufacturing: Conclude a meaningful China trade deal; pass a robust infrastructure plan to rebuild America with our own workers, iron, and steel; and enhance skills training and apprenticeship opportunities for the makers of the future.”
Economists are starting to see less “fairy dust” emanating from the “Magic Wand for manufacturing” that Trump touted on Twitter in January.
Manufacturers have been hit hard by higher costs caused by tariffs, trade wars and waning global demand. Additionally, the benefits from the Trump tax cuts are starting to dwindle. Friday’s job report from the Labor Department ended 19 consecutive months of employment gains, making it just short of the longest run for factory employment since the mid-1980s.
Manufacturing remains generally strong, however. Businesses are still optimistic despite talk of a slowdown. The Institute for Supply Management reported that the manufacturing PMI for March rose 1.1. points to 55.3 after posting a downward trend in recent months. ISM’s break-even point for growth for the sector is 55, but the three-month trend appears promising for now.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
Beige Book shows concerns about trade policy
Manufacturing was mixed, but two-thirds of districts said activity was little changed or had declined.
New York state manufacturing index drops again in April
Firms were pessimistic, with the future general business conditions index falling to its second lowest reading in the more than 20-year history of the survey