Manufacturing production average worker week

The US Bureau of Labor Statistics conducts the monthly establishment survey and reports the number of hours worked by the manufacturing (FXR) sector workers. The manufacturing sector (ITA) employs a large portion of the US workforce, and increasing worker hours is a strong signal for the economy. Increasing working hours in the manufacturing sector (IYJ) is a sign that employers are anticipating higher demand in the future, which is a positive sign for the economy.

What Manufacturing Workers’ Increasing Hours Mean for the Economy

Manufacturing average weekly hours increased in April

As per the latest Conference Board Leading Economic Index (or LEI) report, the average working hours for production workers increased marginally to 42.4 hours compared to the February reading. This is the best number for this index in the last seven months and an indication that the manufacturing sector could continue to improve in the near term. This forward-looking indicator had a net positive impact of 0.13 (or 13%) on the April LEI reading.

Key industries and ETF performance

The manufacturing sector has continued to improve in recent months, and the latest economic data including the ISM manufacturing (VIS) index, industrial production, and capacity utilization indicated that the improving trend remained intact. The SPDR Industrial Select Sector Fund (XLI), which is one of the major ETFs in the manufacturing sector, managed a pullback in May after three consecutive monthly losses since February. The YTD return is still negative, but the positive momentum from earnings season is likely to push the sector into positive YTD returns in the near term. In the next part of this series, we’ll analyze the impact of weekly jobless claims on the Conference Board Leading Economic index.

Latest articles

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”

AMD stock hit a new 13-year high after the EPYC Rome server CPU launched. How can AMD outperform Intel CPUs at such low prices and still profit?

VMware (VMW) lost about 9% in early hours trading today. VMW released its Q2 of fiscal 2020 results on August 22 after the market closed.

Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?