U.S. Economic News
September 4, 2018
U.S. Economic Indicators
The ISM Manufacturing Index rose 3.2 percentage points to 61.3 in August. The Employment Index increased 2.0 percentage points to 58.5 while the New Orders Index jumped 4.9 percentage points to 65.1. ISM Report
Construction spending was up 0.1% in July at an annualized rate of $1.32 trillion. Public construction rose 0.7% while private construction edged down 0.1%. Census Report
U.S. News
The Wall Street Journal reports that sand companies operating in the Permian Basin may face declining demand for sand this year just as a flood of new sand supplies comes online. Although U.S. oil production is expected to set new records this year, constraints such as insufficient pipeline capacity and scarce labor mean that oil companies may cut back on production increases, causing the price of sand to drop. WSJ
Ben Bland of the Financial Times writes that the escalating U.S.-China trade war is forcing China-based manufacturers to realign global supply chains. Bland notes that while many firms are seeking to shorten supply chains to minimize the impact of tariffs on their products, it is unlikely that firms will be able to establish new relationships with factories, suppliers, and governments in the short-term, meaning that consumers will likely face higher prices. FT