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Tag Archives: Manufacturing

It Starts: First Truck Maker Cuts Production

Navistar confirms next phase in Transportation Recession. After orders by trucking companies for Class-8 trucks – the heavy trucks that haul trailers across the country – collapsed by 81% in July compared to July last year to the smallest number of orders since 2010, deepening a trend that has gotten worse all year, it would only be a matter of time before truck manufacturers announce production cuts and ultimately layoffs. These heavy-truck makers – Peterbilt and Kenworth, divisions...

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Inflation Data Shows Tariffs Are Not a Tax on Consumers but on Foreign & US Corporations

Inflation runs hot in housing, medical services, health insurance, other items that are not imported. The consumer price inflation data released today by the Bureau of Labor Statistics, which corroborates prior inflation data, says that, yes, prices are rising, but they’re rising sharply in services that are not impacted by imports and tariffs, such as rents and other housing costs, healthcare, education, and other services, and also in restaurants (where customers pay mostly for labor...

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Why Have Global Semiconductor Sales Plunged & Gotten Stuck at These Levels for 5 Months Now?

Today’s scenario is very unlike the plunge during the Financial Crisis, which blew over in no time. This is an edited transcript from my interview with “This Week in Money” by HoweStreet.com. You can listen to it here. Semiconductor sales have plunged about 22% from the peak last October. That peak was the end of a long spike that started in 2017. When you look at the chart, you see the surge in semiconductor sales that lasted for a year and a half. And then it’s just a straight line...

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What Plunging Global Semiconductor Sales Just Said about Autos, IT & How the Economy Reacts to Uncertainties

The deepest plunge since the Financial Crisis, but more persistent. Global chip sales plunged 16.8% in June from June last year, to $32.7 billion, on a three-month moving average basis, and are down 22% from the peak in October 2018, according to the World Semiconductor Trade Statistics today. As deepest and most relentless plunge in semiconductor sales since the Financial Crisis continues, any hopes for a V-shaped recovery, such as during the Financial Crisis, have been shelved: This...

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The Biggie that Used to Be Strong: Nonresidential Construction Spending Suddenly Sags

Only feeble signs of manufacturing returning to the US (you’ve got to build the plants first). Construction spending, an important part of the US economy, has essentially gone nowhere over the past 18 months – the longest period of drought since the great recession. Total construction spending – residential and nonresidential, private and public – in June fell 2.1% from June last year to a seasonally adjusted annual rate of $1.29 trillion, according to the Commerce Department today....

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World Trade in Face of Tariffmageddon, Trade Wars & Manufacturing Slowdown

Consumers and companies keep plugging, the world has not come to an end. World trade volume – imports and exports of merchandise across the globe – increased 0.3% in May from April, after falling 0.6% in the prior month, according to the Merchandise World Trade Monitor, released today by CPB Netherlands Bureau for Economic Policy Analysis. On a year-over-year basis, the index fell 0.4%. And it is down 2.1% from the peak in October 2018. This isn’t exactly stellar, compared to 2017 and...

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I Got it, Nothing Matters. Tesla, Boeing, Other Stocks: It’s Like the Whole Market Has Gone Nuts

Story stocks, momentum stocks, hyperventilation stocks, consensual hallucination stocks, financial engineering stocks: anything but reality. You see, Tesla is different. It just reported another doozie, a loss of $408 million in the second quarter, after its $702 million loss in the first quarter, for a total loss in the first half of $1.1 billion. In its 14-year history, it has never generated an annual profit. It has real and popular products and surging sales, but it subsidizes...

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Truck Makers Are Going to Have to Fess Up Soon

“Orders” of Heavy Trucks Collapsed by 70% but “Sales” Rose to Highest Level Since 2006: There’s a Lag. And Sales Are Next Now there is this phenomenon: Orders for Class 8 trucks – the heavy trucks that move a big part of the goods across the US – have collapsed by about 70% in May and June compared to a year earlier, to just over 10,000 truck-orders per month, the lowest in years. But sales of Class 8 trucks in June, as measured by deliveries to trucking companies and truckers, reached...

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Boeing, Airbus and Airline Overcapacity in Asia & Europe

And 200 miracle orders — well, just a letter of intent — for the Boeing 737 MAX at the Paris Air Show. By MC01, a frequent commenter on WOLF STREET: Airlines and aircraft manufacturers usually announce large deals during the big air shows to add an air of glitz and glamour to their dealings. With the growing importance of Asian markets, air shows such as Aero India and the Dubai Airshow have gained in importance over the past decade. But the most important worldwide are still the Paris...

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Animated chart of the day: World’s top ten manufacturing nations, 1970 to 2017 – Publications – AEI

AEI Animated chart of the day: World’s top ten manufacturing nations, 1970 to 2017 Here’s another animated “bar chart race” visualization showing the world top ten manufacturing nations by share of global manufacturing output from 1970 to 2017 using data from the statistics division of the United Nations. A few observations: 1. The USSR was the world’s second largest manufacturing nation from 1970 until Japan surpassed the USSR in 1984 to rise to the No. 2...

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