Reshoring Adds More Than 100,000 Jobs To U.S. Economy In 2020
- According to the Reshoring Initiative, in 2020, more jobs were created in the United States thanks to reshoring than were created by foreign direct investment. It is the first time that has happened since 2013. Reshoring created about 109,000 U.S. jobs out of about 161,000 total jobs created from reshoring and foreign direct investment in 2020. Read more here.
- Total U.S. industrial production increased 0.8 percent in May. Manufacturing production advanced 0.9 percent due to a large gain in motor vehicle assemblies and the indexes for mining and utilities rose 1.2 percent and 0.2 percent, respectively. At 99.9 percent of its 2017 average, total industrial production in May 2021 was 16.3 percent higher than it was a year earlier, but 1.4 percent lower than it was in February 2020, before the COVID-19 forced shutdowns. Read the Federal Reserve’s full report here.
- According to Statistics Canada, manufacturing sales fell 2.1 percent to $57.1 billion in April due to a continued shortage of semiconductor chips that prompted auto companies to halt or slow production. Transportation equipment sales fell 23.6 percent to $6.4 billion and motor vehicle sales fell 36.5 percent to $2.3 billion, the largest month-over-month decrease since April 2020. Read more here.
- The Federal Reserve Bank of New York reported that the manufacturing survey for its region fell seven points to 17.4 in June. New orders, employment, shipments, and the length of the average workweek increased moderately, and there was a rise in unfilled orders. Looking ahead, firms remained optimistic that conditions would improve over the next six months, with the index for future employment reaching a record high. Read the full report here. Meanwhile, the Federal Reserve Bank of Philadelphia said its manufacturing survey indicated that general activity, new orders, and shipments remained elevated this month and that employment continues to increase. Additionally, most future indicators improved, suggesting that more firms expect overall growth over the next six months. Read the full report here.
- According to the U.S. Chamber of Commerce’s second quarter Commercial Construction Index, 88 percent of contractors report moderate to high levels of difficulty finding skilled workers and 35 percent of those have turned down work because of it. Additionally, 84 percent of contractors are facing at least one material shortage, up from 71 percent last quarter. Read the full report here.
- U.S. homebuilding increased in May. The number of new homes under construction increased 3.6 percent between April 2021 and May 2021 and 50.3 percent between May 2020 and May 2021. Read the full report here.
- According to Finance Canada, wholesale sales in the country increased 0.4 percent in April to C$71.52 billion. Analysts had predicted a 0.9 percent decline. Wholesale sales for March were revised up to show a 3.2 percent rise. Read more here.
- The number of individuals who filed for U.S. unemployment benefits rose during the week that ended June 12. Specifically, 412,000 individuals filed jobless claims, an increase of 37,000 from the previous week’s level. The four-week moving average was 395,000, a decrease of 8,000 from the previous week’s average. That four-week claim number was at its lowest level since March 14, 2020 when it was 225,500. Read the full report here.
- In other economic news: The Conference Board’s Leading Economic Index, a key gauge of future U.S. growth, rose 1.3 percent in May to 114.5 following a 1.3 percent increase in April and a 1.4 percent increase in March; the U.S. Producer Price Index rose 0.8 percent from April 2021 to May 2021 and 6.6 percent from May 2020 to May 2021; prices for U.S. imports increased 1.1 percent in May, while U.S. export prices rose 2.2 percent; and Statistics Canada said it estimates that producer prices in that country advanced 3.1 percent from April to May and 16.9 percent year-over-year.