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				<h1 class="entry-title">US Manufacturing and Spending Seen Taking Short-Term Hit From Hurricane Harvey&#8217;s&nbsp;Impact</h1>
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<div class="entry-meta">by Arthur Friedman</div>

			<time class="entry-date published" get_the_author() ); datetime="2017-09-05T10:27:25+00:00">Posted on September 5, 2017</time>
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				in <a href="https://sourcingjournalonline.com/category/logistics-1/feature-logistics-1/" rel="category tag">Feature</a>, <a href="https://sourcingjournalonline.com/category/logistics-1/" rel="category tag">Logistics</a>			</span>
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<p>The global manufacturing recovery should keep up its momentum, but disruptions caused by <a href="https://sourcingjournalonline.com/hurricane-harvey-disaster-retail-loss/">Hurricane Harvey</a> will warp August and September output data, according to an analysis by IHS Markit U.S. economist Michael Montgomery.</p>
<p>Supply disruptions will rock oil refining that accounted for 3 percent of industrial production last year, and the chemical industry, responsible for 12.4% of industrial production in 2016, Montgomery said Friday.</p>
<p>Many chemical plants were forced to derail operations due to flooding and damage caused by Harvey, which registered as the largest rain event in the country’s history. <a href="https://sourcingjournalonline.com/textile-roundup-hyosung-stretches-spandex-capacity-polygiene-teams-sinterama-hydro-bot-closer-reality-invista-invests-nylon-plant/">Invista</a> stopped production at its Victoria plant that primarily manufactures nylon 6,6 intermediate chemicals that are used in the manufacture of its consumer brands Stainmaster, Antron and Cordura and Ascend Performance Materials was also forced to stop nylon chemical production at its Chocolate Bayou facility in Alvin, Texas.</p>
<p>“Those two industries are dominant in Harvey-flooded areas,” he said. “Storm damage had limited time to drag down August, but recovery will be sluggish in the September numbers; if industrial production was available twice per month rather than monthly, the first half of September would be truly ugly.”</p>
<p>Port Houston was back in action on Friday after being shut down for a week by the massive storm. The two area airports were also reopened and UPS and FedEx, which has suspended operations throughout most of southeast Texas during the storm, were said to be slowly resuming deliveries where possible.</p>
<h4>[Read more about Hurricane Harvey&#8217;s Impact: <a href="https://sourcingjournalonline.com/logistics-nightmare-follows-in-harveys-wake/">Logistics Nightmare Follows in Harvey’s Wake</a>]</h4>
<p>The ISM purchasing managers&#8217; index has been rolling along since late 2016. The first seven months of this year averaged 56.4, but August’s showing was the best since April 2011. A reading of greater than 50 signals increased economic activity, less than 50 indicates a contraction.</p>
<div style="clear:both; margin-top:0em; margin-bottom:1em;"><a href="https://sourcingjournalonline.com/former-armour-execs-launch-revtown-premium-denim-brand/" target="_self" rel="nofollow" class="IRPP_kangoo"><style> .IRPP_kangoo , .IRPP_kangoo .postImageUrl , .IRPP_kangoo .imgUrl , .IRPP_kangoo .centered-text-area { min-height: 100px; position: relative; } .IRPP_kangoo , .IRPP_kangoo:hover , .IRPP_kangoo:visited , .IRPP_kangoo:active { border:0!important; } .IRPP_kangoo { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #ECF0F1; box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -moz-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -o-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); -webkit-box-shadow: 0 1px 2px rgba(0, 0, 0, 0.17); } .IRPP_kangoo:active , .IRPP_kangoo:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #e6e6e6; } .IRPP_kangoo .postImageUrl , .IRPP_kangoo .imgUrl { background-position: center; background-size: cover; float: left; margin: 0; padding: 0; } .IRPP_kangoo .postImageUrl { width: 30%; } .IRPP_kangoo .imgUrl { width: 100%; } .IRPP_kangoo .centered-text-area { float: right; width: 70%; padding:0; margin:0; } .IRPP_kangoo .centered-text { display: table; height: 100px; left: 0; top: 0; padding:0; margin:0; } .IRPP_kangoo .IRPP_kangoo-content { display: table-cell; margin: 0; padding: 0 10px 0 10px; position: relative; vertical-align: middle; width: 100%; } .IRPP_kangoo .ctaText { border-bottom: 0 solid #fff; color: #C0392B; font-size: 13px; font-weight: bold; letter-spacing: .125em; margin: 0; padding: 0; text-decoration: underline; } .IRPP_kangoo .postTitle { color: #000000; font-size: 16px; font-weight: 600; margin: 0; padding: 0; } .IRPP_kangoo .ctaButton { background-color: #e6e6e6; margin-left: 10px; position: absolute; right: 0; top: 0; } .IRPP_kangoo:hover .imgUrl { -webkit-transform: scale(1.2); -moz-transform: scale(1.2); -o-transform: scale(1.2); -ms-transform: scale(1.2); transform: scale(1.2); } .IRPP_kangoo .imgUrl { -webkit-transition: -webkit-transform 0.4s ease-in-out; -moz-transition: -moz-transform 0.4s ease-in-out; -o-transition: -o-transform 0.4s ease-in-out; -ms-transition: -ms-transform 0.4s ease-in-out; transition: transform 0.4s ease-in-out; } .IRPP_kangoo:after { content: ""; display: block; clear: both; } </style><div class="postImageUrl" style="overflow:hidden; z-index: 10; max-width: 100%;"><div class="imgUrl" style="background-image:url(https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/Revtown-Denim-759x597-e1517265634690.png?fit=300%2C236&ssl=1);"></div></div><div class="centered-text-area"><div class="centered-text"><div class="IRPP_kangoo-content"><div class="ctaText" style="float:left;">Related Article</div><div class="clear:both;"></div><div class="postTitle" style="float:left;">Former Under Armour Execs Launch Revtown Premium Denim Brand</div></div></div></div></a></div><p>The August ISM index for manufacturing surged to 58.8 from 56.3 in July on gains in employment, supplier deliveries and inventories. The orders score eased 0.1 point to 60.3, while production rose 0.4 point to 61.0. New export orders sagged 2.0 points to a still-strong 55.5.</p>
<p>“The manufacturing world is in good shape headed into the last third of 2017, but Mother Nature is demanding a breather,” Montgomery said. “The ISM manufacturing report for August is more a portrait of what might have been than the reality that will happen, thanks to Harvey. The important message is that the normal rules do not apply in the short term when events of this magnitude happen in key parts of key industries. September manufacturing could have been a contender, instead it will throw in the towel. The fourth quarter should see solid gains plus a recovery bump to growth.”</p>
<p>The hurricane is likely to slow consumer spending in the third quarter, as well, according to Chris G. Christopher Jr., executive director for U.S. economics at IHS Markit.</p>
<p>Income finally made a comeback in July after a roller-coaster ride since March, Christopher noted. Personal income jumped 0.4% in July after a flat June, while wages made significant gains for the second month in a row. Disposable income rose 0.3% after a flat reading in June.</p>
<p>IHS now expects real gross domestic product growth in the third quarter—previously estimated at around 3.5%—to be cut by 0.5 to 0.6 percentage points. Fourth quarter growth—previously estimated at around 2.4%—will likely be bumped up by a few tenths of a percentage point. The Hurricane Harvey impacts are taking about 0.3 percentage points off of real consumer spending growth in the third-quarter, with IHS now predicting third quarter real consumer spending growth outlook at 2.7% to 2.8%.</p>
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										<span>by Caletha Crawford&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/report-amazon-set-lay-off-hundreds/">Feb, 13 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/ecommerce-1/ ">
											E-commerce											<a  href="https://sourcingjournalonline.com/category/ecommerce-1/news-ecommerce-1/ ">
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								<div class="entry-excerpt">
									<p>Though the online player still has aggressive growth plans, including a second headquarters, which will employ 50,000 workers, Amazon is currently eliminating hundreds of jobs.</p>
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							<article id="post-78710"   class="col-md-12 recentnews">
								
																	<a class="hidden-xs" href="https://sourcingjournalonline.com/freightos-survey-shows-importers-face-overhead-technology-challenges/" rel="bookmark">
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											<img width="210" height="158" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Freightos Survey Shows Importers Face Overhead and Technology&nbsp;Challenges" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?zoom=3&amp;resize=210%2C158&amp;ssl=1 630w" sizes="(max-width: 210px) 100vw, 210px" /><noscript><img width="210" height="158" src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Freightos Survey Shows Importers Face Overhead and Technology&nbsp;Challenges" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/01/DHL-ground-handling-e1514997473701.jpg?zoom=3&amp;resize=210%2C158&amp;ssl=1 630w" sizes="(max-width: 210px) 100vw, 210px" /></noscript>																					</div><!-- .entry-thumb-wrapper -->
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								<header class="entry-header">
									<h2 class="entry-title"><a href="https://sourcingjournalonline.com/freightos-survey-shows-importers-face-overhead-technology-challenges/" rel="bookmark">Freightos Survey Shows Importers Face Overhead and Technology&nbsp;Challenges</a></h2>
									<div class="entry-meta">
										<span>by Arthur Friedman&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/freightos-survey-shows-importers-face-overhead-technology-challenges/">Feb, 13 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/logistics-1/feature-logistics-1/ ">
											Feature											<a  href="https://sourcingjournalonline.com/category/logistics-1/ ">
											Logistics											</a>
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								<div class="entry-excerpt">
									<p>New research from Freightos has shed some light on rampant inefficiencies within the global freight sector and trends impacting the growing import-export industry in the U.S.</p>
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							<article id="post-78732"   class="col-md-12 recentnews">
								
																	<a class="hidden-xs" href="https://sourcingjournalonline.com/walmarts-store-assistant-gives-mobile-app-store-edge-jb/" rel="bookmark">
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											<img width="210" height="158" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Walmart’s “Store Assistant” Gives Mobile App an In-Store&nbsp;Edge" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=210%2C158&amp;ssl=1 210w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=176%2C133&amp;ssl=1 176w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /><noscript><img width="210" height="158" src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Walmart’s “Store Assistant” Gives Mobile App an In-Store&nbsp;Edge" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=210%2C158&amp;ssl=1 210w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?resize=176%2C133&amp;ssl=1 176w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/holiday-mobile-app-on-iphone-small-TEASER.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /></noscript>																					</div><!-- .entry-thumb-wrapper -->
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								<header class="entry-header">
									<h2 class="entry-title"><a href="https://sourcingjournalonline.com/walmarts-store-assistant-gives-mobile-app-store-edge-jb/" rel="bookmark">Walmart’s “Store Assistant” Gives Mobile App an In-Store&nbsp;Edge</a></h2>
									<div class="entry-meta">
										<span>by Jessica Binns&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/walmarts-store-assistant-gives-mobile-app-store-edge-jb/">Feb, 13 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/retail/news-retail/ ">
											News											<a  href="https://sourcingjournalonline.com/category/retail/ ">
											Retail											</a>
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								<div class="entry-excerpt">
									<p>Customers seek a better experience and greater convenience, such as Walmart's in-store wayfinding capabilities, from retail mobile applications.</p>
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							<article id="post-78701"   class="col-md-12 recentnews">
								
																	<a class="hidden-xs" href="https://sourcingjournalonline.com/global-trade-growth-2018/" rel="bookmark">
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											<img width="210" height="158" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://i0.wp.com/sourcingjournalonline.com/wp-content/uploads/2017/11/edith-maersk-e1510256316973.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Global Trade Growth Seen Sustaining Momentum in Early&nbsp;2018" /><noscript><img width="210" height="158" src="https://i0.wp.com/sourcingjournalonline.com/wp-content/uploads/2017/11/edith-maersk-e1510256316973.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Global Trade Growth Seen Sustaining Momentum in Early&nbsp;2018" /></noscript>																					</div><!-- .entry-thumb-wrapper -->
									</a>
								
								<header class="entry-header">
									<h2 class="entry-title"><a href="https://sourcingjournalonline.com/global-trade-growth-2018/" rel="bookmark">Global Trade Growth Seen Sustaining Momentum in Early&nbsp;2018</a></h2>
									<div class="entry-meta">
										<span>by Arthur Friedman&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/global-trade-growth-2018/">Feb, 13 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/trade/market-data-trade/ ">
											Market Data											<a  href="https://sourcingjournalonline.com/category/trade/ ">
											Trade											</a>
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									</div><!-- .entry-meta -->
								</header><!-- .entry-header -->

								<div class="entry-excerpt">
									<p>The World Trade Organization’s latest World Trade Outlook Indicator (WTOI) released Monday suggests that the trade recovery of 2017 should continue, with solid volume growth in the first quarter.</p>
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							<article id="post-78725"   class="col-md-12 recentnews">
								
																	<a class="hidden-xs" href="https://sourcingjournalonline.com/footwear-legislation-duty-savings/" rel="bookmark">
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											<img width="210" height="158" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="5 Changes in Footwear That Could Cut Costs in&nbsp;2018" srcset="https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?resize=208%2C156&amp;ssl=1 208w, https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /><noscript><img width="210" height="158" src="https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="5 Changes in Footwear That Could Cut Costs in&nbsp;2018" srcset="https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?resize=208%2C156&amp;ssl=1 208w, https://i2.wp.com/sourcingjournalonline.com/wp-content/uploads/2015/06/washington_dc_capitol1.jpg?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /></noscript>																					</div><!-- .entry-thumb-wrapper -->
									</a>
								
								<header class="entry-header">
									<h2 class="entry-title"><a href="https://sourcingjournalonline.com/footwear-legislation-duty-savings/" rel="bookmark">5 Changes in Footwear That Could Cut Costs in&nbsp;2018</a></h2>
									<div class="entry-meta">
										<span>by Tara Donaldson&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/footwear-legislation-duty-savings/">Feb, 12 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/footwear-2/ ">
											Footwear											</a>
											</span>
									</div><!-- .entry-meta -->
								</header><!-- .entry-header -->

								<div class="entry-excerpt">
									<p>The footwear industry spends more on duties than most other segments, but that could all change, thanks to looming legislation that could save the industry billions.</p>
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							<article id="post-78659"   class="col-md-12 recentnews">
								
																	<a class="hidden-xs" href="https://sourcingjournalonline.com/ffany-footwear-trends-independent-shoe-stores/" rel="bookmark">
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											<img width="210" height="158" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Brands at FFANY Focus on the Independent&nbsp;Retailer" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=210%2C158&amp;ssl=1 210w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=176%2C133&amp;ssl=1 176w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /><noscript><img width="210" height="158" src="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=210%2C158&amp;ssl=1" class="entry-thumb wp-post-image" alt="Brands at FFANY Focus on the Independent&nbsp;Retailer" srcset="https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=210%2C158&amp;ssl=1 210w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?resize=176%2C133&amp;ssl=1 176w, https://i1.wp.com/sourcingjournalonline.com/wp-content/uploads/2018/02/Screen-Shot-2018-02-12-at-1.20.14-PM.png?zoom=2&amp;resize=210%2C158&amp;ssl=1 420w" sizes="(max-width: 210px) 100vw, 210px" /></noscript>																					</div><!-- .entry-thumb-wrapper -->
									</a>
								
								<header class="entry-header">
									<h2 class="entry-title"><a href="https://sourcingjournalonline.com/ffany-footwear-trends-independent-shoe-stores/" rel="bookmark">Brands at FFANY Focus on the Independent&nbsp;Retailer</a></h2>
									<div class="entry-meta">
										<span>by Angela Velasquez&nbsp;on&nbsp;<a href="https://sourcingjournalonline.com/ffany-footwear-trends-independent-shoe-stores/">Feb, 12 2018 </a> in 											<a  href="https://sourcingjournalonline.com/category/footwear-2/ ">
											Footwear											</a>
											</span>
									</div><!-- .entry-meta -->
								</header><!-- .entry-header -->

								<div class="entry-excerpt">
									<p>Unique product is the lifeblood of independent footwear retailers across the U.S. New exhibitors at FFANY’s New York Shoe Expo this week shared distinct footwear designs and unique brand stories.</p>
<div class="pmpro_content_message">This content is for Annual, Monthly and Limited members only. You can read up to five free articles each month with a Limited Level Subscription. Please log in, or register.<br /><a href="http://sourcingjournalonline.com/wp-login.php">Log In</a> <a href="http://sourcingjournalonline.com/wp-login.php?action=register">Register</a></div>																		<a class="more-link" id='checksa' href="https://sourcingjournalonline.com/ffany-footwear-trends-independent-shoe-stores/">Read more</a>
															
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