menu-bgimg

What we can offer you

We provide detailed transactional data, cost benchmarks and in-depth analytics for participants in the wood raw materials supply chain.
  • Pricing Data
  • Benchmarks
  • Product Forecasting
  • Advisory Services
  • Analytics
Learn More

SilvaStat360 Platform

  • Price Benchmarks
  • Madison’s Lumber Reporter
  • The Beck Group’s Sawmill TQ
  • Timber Supply Analysis 
  • Global Economic Data

Explore Forest2Market's Interactive Business Intelligence Platform

Learn More

Industries

From biomass suppliers in the Baltics to pulp producers in Brazil and TIMOs in the United States, Forest2Market provides products and services for suppliers, producers and other stakeholders in the global forest products industry.

Learn More
x
 
Blog

Forestry-Related Industry Performance—November 2013

January 03, 2014
Author: Suz-Anne Kinney
After edging up by 0.1% in October (revised from -0.1%), the seasonally adjusted industrial production (IP) index gained another 1.1% in November. The bulk of November’s gain is attributable to utility output, thanks to colder temperatures. Performance of major sub-groups was as follows:
  • Manufacturing advanced by 0.6%, besting October’s +0.5%. Manufacturing remained 3.6% below its pre-recessionary peak, however.
  • Wood Products gained 3.1%, handily beating October’s 0.8% increase.
  • Paper rose by 0.2%, slowing from October’s 0.8% increase.
  • Construction was unchanged at 0.6%.
  • Consumer Goods jumped by 1.5%, reversing October’s 0.1% decline.

Capacity utilization of all industries increased 0.8% in November (to 79.0%); both Wood Products (3.1%) and Paper (0.3%) expanded. Capacity among all industries nudged 0.2% higher in November; once again, Wood Products was unchanged while Paper shrank by 0.1%.

Manufacturing and Non-manufacturing

For a second month in November, more manufacturing businesses surveyed by the Institute for Supply Management (ISM) indicated that their activity expanded than any time since April 2011 (Figure 2). The PMI rose to 57.3%, an increase of 0.9 percentage point from October's reading of 56.4% (50% is the breakpoint between contraction and expansion). “With 15 of 18 manufacturing industries reporting growth in November,” said ISM’s Bradley Holcomb, “the positive growth trend characterizing the second half of 2013 is continuing.”

ISM_Perf_Nov_2013.png

For manufacturing overall, orders, production and employment were up in November; inventories were either essentially unchanged or decreasing; and input prices rose more slowly (Table 3). Performance of the two manufacturing industries we track diverged, with Wood Products contracting but Paper Products expanding. Wood Products orders and production fell, and input prices rose. For Paper Products, orders and production rose while input prices fell.

Perf_Overview_Nov_2013.jpg

Growth in the larger service sector slowed again in November. The NMI registered 53.9%, 1.5 percentage points lower than October’s 55.4%. Sub-indices related to new orders, business activity and employment all declined relative to October (the employment index to its lowest point since May). Nonetheless, “respondents' comments for the most part indicate the non-manufacturing sector is maintaining a steady course of incremental growth and a positive outlook for the upcoming months.” said ISM’s Anthony Nieves.

Among the individual service industries we track, only Ag & Forestry expanded (thanks to new orders, higher inventories and imports). The drop in Construction employment was enough to offset increases in inventories and backlogged and new export orders. Real Estate was unchanged.

Relevant commodities up in price included corrugated boxes. Caustic soda, gasoline, diesel and natural gas were down in price.

Interested in a forecast of these industrial performance indicators for the US? Visit the Economic Outlook section of our website to learn more.

Back to Blog

You May Also be Interested In

February 19, 2020
US Forest Industry Performance: January 2020
US forest industry performance in December 2019 and January 2020 was recently reported by both the US government and...
Continue Reading
February 04, 2020
Sustainable Forestry and Land Retention Study Quantifies Impact for Landowners
Clearing Land Title Generates the Greatest Economic Benefit  
Continue Reading
January 22, 2020
US Forest Industry Performance: December 2019
US forest industry performance in November and December was recently reported by both the US government and the...
Continue Reading