- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Categories
- Additive Manufacturing
- Aluminum Welding
- Arc Welding
- Assembly and Joining
- Automation and Robotics
- Bending and Forming
- Consumables
- Cutting and Weld Prep
- Electric Vehicles
- En Español
- Finishing
- Hydroforming
- Laser Cutting
- Laser Welding
- Machining
- Manufacturing Software
- Materials Handling
- Metals/Materials
- Oxyfuel Cutting
- Plasma Cutting
- Power Tools
- Punching and Other Holemaking
- Roll Forming
- Safety
- Sawing
- Shearing
- Shop Management
- Testing and Measuring
- Tube and Pipe Fabrication
- Tube and Pipe Production
- Waterjet Cutting
Industry Directory
Webcasts
Podcasts
FAB 40
Advertise
Subscribe
Account Login
Search
Data, statistics, and context
- By Eric Lundin
- May 31, 2013
Certainly the economy could be facing a slowdown, but the main reason concerns federal spending and the sequestration, not consumer spending. A tiny, one-month change in direction in consumer spending is nothing to get excited about.
Looking at the big picture, it’s clear that consumer spending has been helpful to economic growth over the last few years. Since the economy was at its lowest point, 2009Q2, GDP has grown 8.23 percent. Personal consumption expenditures have grown 8.29 percent since then, slightly ahead of GDP. Of course expenditures on durable goods was a much bigger help, growing more than 30 percent over this timeframe.
Likewise trends elsewhere appear to be troubling, but a closer look reveals some reasons for optimism. The manufacturing-related PMI was at 50.7 in April, meaning manufacturing was just barely growing. Looking back over the previous five months, the trend was slower growth from one month to the next. However, the PMI’s new orders index was 52.3, the fourth monthly increase. Several other indices—production, supplier deliveries, inventories, and order backlog—were favorable.
The automotive industry, which is a bellwether for the economy, is doing well. According to www.wardsauto.com. U.S. auto manufacturers turned out 998,818 cars and trucks in April, a 16-percent increase from a year earlier.
The construction is looking up too. Permits for privately-owned homes hit 1,017,000 in April (seasonally adjusted at annual rates), up 14 percent from the previous month and 36 percent from the same month in the previous year. Permit issuance was close to a half million homes in 2009.
Getting back to the drop in consumer spending, digging into the reasons for it really puts this story into context. The biggest drop in consumer spending was in energy. I’d say this is a big benefit to the economy, because paying less for energy frees up money for other expenditures. It’s hard to look ahead one month, but summer is right around the corner, so it’s just possible that this money might get spent on durable goods. Maybe a new grill, a tennis racquet, a baseball bat, an outdoor furniture set—the possibilities are nearly endless.
subscribe now
The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscriptionAbout the Author
Eric Lundin
2135 Point Blvd
Elgin, IL 60123
815-227-8262
Eric Lundin worked on The Tube & Pipe Journal from 2000 to 2022.
- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of The Fabricator.
Easily access valuable industry resources now with full access to the digital edition of The Welder.
Easily access valuable industry resources now with full access to the digital edition of The Tube and Pipe Journal.
Easily access valuable industry resources now with full access to the digital edition of The Fabricator en Español.
- Podcasting
- Podcast:
- The Fabricator Podcast
- Published:
- 03/26/2024
- Running Time:
- 67:51
This week on The Fabricator Podcast, Jason Becker, host of the Arc Junkies Podcast and owner of Underground...
- Trending Articles
USS Midway’s tuition-free welding program a win-win
San Diego landmark becomes floating classroom for student welders
K&S celebrates 50 years in business
Guiding metal fabrication’s automation transformation
Increasing revenue by applying production concepts to sales and marketing
- Industry Events
Coil Processing Workshop & Tours
- April 2 - 3, 2024
- Corpus Christi, TX
GOLF4MFG South
- April 15, 2024
- Charlotte, NC
16th Annual Safety Conference
- April 30 - May 1, 2024
- Elgin,
Pipe and Tube Conference
- May 21 - 22, 2024
- Omaha, NE
World-Class Roll Forming Workshop
- June 5 - 6, 2024
- Louisville, KY