The U.S. economy grew 6.7% at the annual rate in the second quarter. Real value-added output in manufacturing rose by an annualized 5.5% in the second quarter, with the sector accounting for 11.1% of real GDP.
- Manufacturing value-added output increased from $2.444 trillion in the first quarter to $2.525 trillion in the second quarter, an all-time high. Both durable goods and nondurable goods set new records. Real value-added output in manufacturing rose to a record $2.329 trillion in the second quarter, as expressed in chained 2012 dollars.
- The current forecast is for 5.8% growth in 2021 overall, with real GDP rising 3.8% in 2022. In addition, real GDP should rise by 4.5% in the third quarter, downshifting somewhat from prior estimates due to challenges related to supply chain disruptions and rising COVID-19 cases.
- The ISM® Manufacturing Purchasing Managers’ Index® expanded robustly once again, with the headline index rising from 59.9 in August to 61.1 in September. New orders and production remained solid, albeit with some easing in the latter. The employment data were consistent with challenges in hiring, with 47% noting difficulties in increasing their workforce.
The ISM® survey noted continuing concerns with supply chain disruptions, rising costs and workforce shortages. Prices accelerated in September, even as they have pulled back from June’s pace, which was the fastest since July 1979.
Manufacturing Data Rhode Island:
If you click on the link and type in Rhode Island, you will see some very interesting data relative to our Manufacturing Sector.