Looking to provide outlook for the next quarter, InterOcean Advisors LLC released its Manufacturing Update for the second quarter of 2016. The update illustrates changes in valuation metrics by industry, covering aerospace and defense, automotive, building products, plastics and packaging, and others.
The report provides statistics on global forces that impact U.S. manufacturing such as oil and steel prices; it produces the overall status of U.S. manufacturing by examining leading economic indicators that impact it, including the purchasing managers’ index (PMI), manufacturers’ new orders, consumer confidence, and housing starts. The IOA Manufacturing Index closely tracks its results to the S&P 500 Index in the second quarter.
The update concludes that U.S. manufacturing in the second quarter “lacks clear direction,” and that the index steadiness reflects the opposing forces of price increases in commodities like oil and steel and improving consumer sentiment, both of which are offset by soft international demand. By industry, the metals index displayed the strongest growth, while the automotive index was the weakest.
To view or download the report, go to bit.ly/HP1608MfgUpdate.
