Made In America: Manufacturing Group Calls Growing U.S. Trade Gap With China ‘Disturbing’

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MANUFACTURING GROUP CALLS GROWING U.S. TRADE GAP WITH CHINA ‘DISTURBING’
The Alliance for American Manufacturing (AAM) issued a statement last week calling the growing U.S. trade deficit with China, Japan and other East Asian nations a “disturbing” trend ahead for U.S. manufacturing, especially in the auto sector.

The alliance’s warning followed the Sept. 3 release of the U.S. Commerce Department’s latest monthly U.S. trade figures, which showed that the U.S. international goods and services trade gap decreased to $41.9 billion in July, from June’s revised $45.2 billion.

“While the overall trade deficit shrunk in July, I see disturbing signs ahead for manufacturing. Remember, China didn’t devalue the yuan until August, so look for continued deterioration of our trade picture with China,” said Alliance for American Manufacturing President Scott Paul. “Auto imports — which hit a new record in July — are rising, thanks largely due to a strong dollar. Our trade deficits with mercantilist nations like Japan, China, and Korea are on the rise. If the Fed raises rates, the dollar could go even higher.”

U.S. JOBLESS RATE FALLS TO 5%, HEALTHCARE SEES BIG GAINS
The U.S. jobless rate fell one percentage point to 5.1% in August as total non-farm payroll employment increased by 173,000 with health care, social assistance and financial activities all seeing strong job gains year over year, according the U.S. Bureau Labor Statistics.

Overall, health care and social assistance added 56,000 jobs for the month. Over the year, employment has risen by 457,000 and 107,000 in those respective sectors.

Manufacturing employment decreased by 17,000 in August with job losses occurring in a number of component industries, including fabricated metal products and food manufacturing (-7,000 each). Employment in mining fell by 9,000 in August. Since reaching a peak in December 2014, mining employment has declined by 90,000, mainly in the oil and gas sector.

To see the full U.S. jobless report for August, visit here.

CONSTRUCTION SECTOR SEES WEAKEST EXPANSION SINCE LATE 2011
Construction employment increased in fewer than half of the nation’s metro areas between July 2014 and July 2015, the weakest expansion since late 2011, according to a new analysis of U.S. employment data released by the Associated General Contractors of America. Association officials noted that the new jobs data comes while a series of vital federal infrastructure funding measures, notably the surface transportation program, languish unfinished in Congress.

“Although construction employment and spending are still expanding well overall, the gains are increasingly spotty,” said Ken Simonson, the association’s chief economist. “Uncertainty over funding for transportation infrastructure, a contraction in oil and gas drilling, and turmoil in international markets have left many local construction markets behind even as others grow strongly.”