Economic Watch: Manufacturing Keeps Expanding but Construction Uneven

The nation's manufacturing sector continued growing over an array of industries last month, though there is a bit of disagreement as to how fast it is expanding, following the release of two reports.

The closely watched Purchasing Managers Index from the Institute for Supply Management showed on Wednesday that the October reading was 58.7%, a decrease of 2.1 percentage points from the September reading of 60.8%.

A reading over 50% indicates manufacturing is expanding while below 50% signals contraction.

This latest headline reading indicates growth in manufacturing for the 14th consecutive month and continued expansion consistent with pre-hurricane levels, according to the report.

Also, the New Orders Index registered 63.4%, a decrease of 1.2 percentage points from September while the Production Index registered 61%, a 1.2 percentage point decrease from the month before.

Of the 18 manufacturing industries surveyed, 16 reported growth in October.

Meantime, a similar gauge from financial information services provider IHS Markit showed the manufacturing sector during October operated at its best level in nine months.

Its U.S. Manufacturing Purchasing Managers' Index (PMI) registered 54.6 in October, up from 53.1 in September. The latest index figure indicated a solid improvement in manufacturing operating conditions. That was the fastest seen since the start of the year, according to the group.

Like the ISM measure, a reading above 50 for the PMI gauge indicates manufacturing is expanding.

The report noted that production grew at an accelerated rate in October, with the pace of expansion reaching an eight-month high. Anecdotal evidence suggested the rise was due to a strong demand environment and larger new order volumes. Similarly, new business received by manufacturers increased solidly and at the fastest pace since March. Panelists generally attributed the upturn to larger client bases.

“U.S. manufacturing stepped up a gear at the start of the fourth quarter, boding well for higher factory production to ...Read the rest of this story

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Intermodal Surges in Third Quarter, Volume Hits Record High

Graphic: IANA

Total intermodal freight volumes climbed 6.3% year-over-year in the third quarter for the strongest growth rate in over three years, according to new figures from the Intermodal Association of North America (IANA).

International intermodal volume increased by 8.2%, the domestic container market grew by 3.8% and trailer loads had the strongest growth number at 8.4%.

"This quarter's results show a continued recovery for all three intermodal segments, marking three consecutive quarters of growth, a first in six years," said Joni Casey, president and CEO of IANA.

The seven highest-density trade corridors accounted for 62.9% of total volume and were up collectively 5.2% for the third quarter.

The Eastern-Western Canada corridor, up 12%, showed the largest gain. Three other lanes exceeded 5% growth after incurring losses in the third quarter of 2016: the South Central-Southwest, at 9.2%; Southeast-Southwest, up 7.7%; and the Northeast-Midwest, at 5.9%.

Two lanes registered a drop in traffic: the Intra-Southeast corridor fell 0.2%, while the Midwest-Northwest corridor dropped 6.1%.

Traffic for intermodal marketing companies grew 4.1%, compared to a 0.6% increase in the second quarter. For the first time in 2017, IMCs recorded gains in both highway and intermodal loadings. Total IMC revenue soared 11.2% over last year, almost twice the 6.6% gain in the second quarter.

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HDA Truck Pride’s Tina Alread Honored by Northwood University

Tina Alread Photo: Northwood University

Tina Alread, vice president of marketing and communications for HDA Truck Pride, has been recognized by Northwood University, in partnership with the Auto Care Association, AWDA, and MEMA for her dedication to aftermarket education.

The award is reserved for industry leaders whose contributions have shaped this industry and provided an educational platform for future leaders to gain a foothold.

Alread has led strategic marketing and communications activities and historically sales for eight years at HDA Truck Pride. Prior to joining the marketing group, she led all commercial channel sales at AxleTech for three years. The first 18 years of her career were spent at Federal-Mogul Corporation, with a focus on the commercial vehicle aftermarket, both in distribution and business development for independent distributors and the fleets.

Alread is on the Membership Committee of Women in Auto Care, involved in Women in Trucking, on the ACA Blue Ribbon Committee, a part of GenNext HD, and a Member of TMC.

“Northwood chose the perfect honoree in Tina. She understands the industry, she knows the customers, and she can roll up her sleeves and teach an installation clinic,” said Don Reimondo, president & CEO of HDA Truck Pride. “In addition to these attributes, she is a role model for future leaders because she is financially astute and familiar with innovations impacting our industry over the coming years. She epitomizes the aspirations for this prestigious award.”

Related: Quality Parts Center Joins HDA Truck Pride

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