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in August but are 6.5% lower than August 2023. Permits for single-family homes were 2.8% higher than July but were down 0.5% in the past year. Permits for buildings with five or more units surged 8.4% from July but are down a significant 16.8% in the past year.

In August, housing starts increased 9.6% over the month and 3.9% over the year. Starts for single-family homes were up 15.8% from July and 5.2% from August 2023. On the other hand, starts for buildings with five or more units declined 6.7% from July and were down 6.2% from August 2023.

Housing completions in August were up 9.2% from July and a significant 30.2% higher than August 2023. Single-family home completions were down 5.6% from July to 1,029,000 but up 8.4% over the year. Completions for buildings with five or more units rose 36.5% and were 79.2% higher than August 2023.

In September, Philadelphia’s was mixed. The index for current general business activity turned positive, rising from -7.0 to 1.7. Nearly 22% of firms reported increased activity this month, while 20% reported decreases and nearly 51% reported no change. On the other hand, the indexes for new orders and shipments declined and turned negative. Firms reported an increase in employment after declining last month, with the employment index rising back into positive territory at 10.7. Firms also provided forecasts on production levels, with a higher share of firms reporting an increase in production (nearly 38%) than those reporting a decrease (28%).

Price indexes moved higher, with firms continuing to report overall increases in prices. The prices paid index rose to its highest reading since December 2022, reflecting the notable portion of firms experiencing higher input costs. The prices received index also rose, undoing the previous month’s decrease.

Looking ahead, most future indicators increased. The index for future general business activity rose slightly to 15.8, indicating growing optimism among firms. A higher proportion of firms still expected increases in activity. Additionally, the new orders, shipments and future employment indexes also rose. Although the future prices paid index increased, the future prices received rose by a larger margin. Meanwhile, the future capital expenditures index moved up to its highest reading since March 2022.

in New York state grew in September for the first time in nearly a year, with the headline general business conditions index rising 16 points to 11.5. The new orders index climbed 17 points to 9.4, a multiyear high, while the shipments index rose 18 points to 17.9, its highest level in a year and a half. Unfilled orders increased slightly, while inventories rose 11 points to zero, indicating inventories are now level after two months of declines. Delivery times were little changed, and supply availability was the same reading (-2.1) as August.

Employment continued to shrink modestly, with the index for the number of employees coming in at -5.7. The average employee workweek recovered some after a steep drop the prior month, signaling a slight increase in hours worked. Input and selling prices were little changed, as reflected in the prices paid index at 23.2 and the prices received index at 7.4. Manufacturers continued to face rising costs while operating in a weakened pricing environment.

Firms were more optimistic about the future. The future business activity index rose eight points to 30.6, with nearly 45% of respondents expecting conditions to improve over the next six months. However, the capital spending index fell 11 points, dipping below zero for the first time since 2020.

Industrial production rose 0.8% in August after falling 0.9% in July. The decline in July was influenced by shutdowns due to Hurricane Beryl. Manufacturing output increased 0.9%, in part, due to a recovery in motor vehicles and parts production, which jumped nearly 10% in August. Meanwhile, manufacturing output excluding motor vehicles and parts production increased 0.3%. At 103.1% of its 2017 average, total industrial production in August was unchanged from the same month last year. Capacity utilization moved up to 78%, 1.7 percentage points below its long-term average from 1972 to 2023.

In August, the majority of major market groups saw gains. The consumer goods index rose 0.7%, with a 10.5% increase in automotive products making up for its loss in the previous month. The materials index grew 0.9%, with gains in all its subcomponents. Defense and space equipment posted a modest increase of 0.5%. The business equipment index rose 1.4%, supported by a 6.6% gain in the transit equipment index.

Durable goods manufacturing increased 2.1%. Apart from the large rebound in motor vehicles and parts, there were gains in primary metals (up 3.2%), electrical equipment, appliances and components (up 2.0%) and aerospace and miscellaneous transportation equipment (up 1.2%). Nondurable goods manufacturing, on the other hand, decreased 0.2% in August, with the largest losses in petroleum and coal products (down 2.3%) and apparel and leather (down 1.6%).

Manufacturing capacity utilization increased 0.6% to 77.2%, which is 1.1 percentage points below the long-term average.

To lower drug prices, Congress should undertake comprehensive reform of pharmacy benefit managers, not embrace price controls, the 51�Թ��� the Senate Tuesday.

What’s going on: “Biopharmaceutical manufacturers are a critical part of the manufacturing economy,” 51�Թ��� Vice President of Domestic Policy Charles Crain said ahead of a Senate Finance Committee hearing on health care costs.

• In 2021, biopharmaceutical firms “accounted for $355 billion in value-added output to the U.S. economy … and directly employed 291,000 workers in the United States, with each of these jobs supporting an additional 4.1 jobs.”
• Crucially, biopharma companies are also responsible for the dozens of groundbreaking, lifesaving medications brought to patients annually.
• But their continued innovation and economic impact are under attack by both Inflation Reduction Act–mandated and the largely unchecked actions of PBMs, Crain continued.

Threats to innovation: Instead of benefiting patients, “the IRA pricing mandates announced last month by the Department of Health and Human Services will … limit the capital manufacturers have available to put toward the astronomically high costs of developing a new medicine,” Crain told the committee, adding that the uncertainty introduced by price controls is also likely to dissuade early-stage investment in new treatments.

• Rather than impose further price controls, Congress should address the influence of PBMs, largely unregulated middlemen that “contribute to the skyrocketing cost of health care by applying upward pressure to list prices that dictate what patients pay for medicines at the pharmacy counter, pocketing manufacturer rebates and failing to provide an appropriate level of transparency about their business models.”

PBM reform: To truly lower health care costs, Congress must rein in PBMs, Crain said. The 51�Թ��� has called on Congress to adopt specific PBM reforms, including:

• Increased transparency into PBMs’ business models;
• Rebate passthrough to ensure that 100% of negotiated savings get passed on to health plan sponsors and employees; and
• Delinking of PBM compensation from medication list prices.

The last word: “Instead of further embracing price controls, it is imperative that Congress act to lower drug prices by reining in PBMs’ problematic business practices and minimizing their ability to further damage the U.S. health care system,” Crain said.

• “All Americans deserve access to high-quality, affordable health care, and PBM reform is an impactful step toward this goal.”

Rep. Yakym (at right) visits the shop floor of in Nappanee, Indiana.

For Rep. Rudy Yakym (R-IN), Indiana’s 2nd Congressional District isn’t just a place on the map—it’s the beating heart of America’s manufacturing sector. It’s a district he proudly refers to as the “manufacturing capital of America.”

• “From the foundries to factory floors, Indiana’s 2nd District is where ‘Made in the USA’ happens,” said Rep. Yakym. “This district is home to some of the most decent and hardworking men and women anywhere in America. They contribute so much to our nation’s industrial base, and I take the responsibility of representing them very seriously.”

Personal connection: Representing this district in the House of Representatives, the fourth-generation Hoosier who was born and raised in South Bend brings a personal connection to manufacturing that shapes his vision for the future of the industry and fiscal responsibility in the United States.

• Before his political career, Rep. Yakym worked for supply chain management firm . His firsthand experience in the industry gave him a unique perspective on the challenges and opportunities within manufacturing.
• His brother Joel works in manufacturing, operating a large machine for in Elkhart. “In his line of work, he has been able to provide a great living for his family, and I want more people to have those opportunities for rewarding, well-paying jobs,” said Rep. Yakym.

This deep-rooted connection to manufacturing is more than just a talking point for Rep. Yakym—it’s a cornerstone of his identity and legislative agenda.

Zoom out: Rep. Yakym’s commitment to manufacturing isn’t just lip service. He led a significant effort in the House of Representatives, rallying more than 140 Republican colleagues to support a tax package that would restore full R&D expensing, bonus depreciation and interest deductibility—key provisions of the 51�Թ���’s “Manufacturing Wins” campaign to preserve tax reform in its entirety.

• Although the package faced hurdles in the Senate, Rep. Yakym’s work laid the groundwork for future bipartisan efforts.

A collaborative spirit: Rep. Yakym’s dedication to bipartisanship is clear. He noted that if he had to choose a member of Congress of the opposing party he’d start a manufacturing company with, he didn’t hesitate to name Rep. Jimmy Panetta (D-CA). Rep. Yakym said they would produce RV components, an industry he knows well from his district, which includes Elkhart, the “RV Capital of the World.”

• “Jimmy and I serve on the House Budget Committee together, and he is always willing to build consensus and work across the aisle to find commonsense solutions,” said Rep. Yakym.

The vision: Looking ahead, Rep. Yakym envisions a future where manufacturing continues to be a pillar of the American economy, especially in his district. He wants the next generation to understand that viable, rewarding career paths in manufacturing are right in their backyard.

• “There is massive demand at the manufacturers in my district for welders, forklift drivers and other jobs that may otherwise be overlooked by students,” Rep. Yakym points out.
• “You can get a well-paying job straight out of high school that will offer on-the-job training. There is also a wealth of advanced manufacturing jobs available at medical device companies, as well as a number of battery manufacturers being brought online in the coming years.”

What’s next: As a congressman, Rep. Yakym’s primary goal is to restore fiscal responsibility in Washington. He sees this as essential not just for the country’s economic health, but also for national security.

• “The main reason I ran for office and my top priority in Congress is restoring fiscal responsibility so that future generations can inherit a nation every bit as prosperous and full of opportunity as the one we did,” said Rep. Yakym. “Getting our fiscal house in order is the most important long-term challenge we face as a nation.”

Only at the 51�Թ���: Shop Talk is a new series that aims to help you get to know the personal connections, insights and priorities of policymakers who impact our industry.

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The 51�Թ��� recently interviewed Rep. Randy Feenstra (R-IA), the vice chair of the House Ways and Means Committee’s Rural America Tax Team, about the estate tax and why he’s working with colleagues on Capitol Hill to repeal it.

51�Թ���: Rep. Feenstra, Congress is facing a “Tax Armageddon” next year, as crucial provisions from 2017’s Tax Cuts and Jobs Act are set to expire. As a member of the Ways and Means Committee, what is your focus moving into next year’s debate?��

Rep. Feenstra: One of those crucial provisions from the Tax Cuts and Jobs Act that is set to expire is the doubling of the estate tax exemption amount, which currently sits at $13.6 million in 2024. After 2025, it will return to half that amount, adjusted for inflation. That change in the Tax Cuts and Jobs Act was another important step toward full repeal of the estate tax, which my Death Tax Repeal Act would do. The bill makes the simple recognition that death should not be a taxable event. When a family is grieving, the federal government sends a multimillion-dollar tax bill as condolences. This is simply wrong.

I’m proud to co-chair the Rural America Tax Team, which has dug into this issue of the “death tax” and the impact it is having on family businesses across the country. As the tax team has spoken to family businesses and estate tax experts from across the country, it’s become increasingly clear that we still have a lot of work to do to provide relief from what can be a devastating setback for multigenerational family businesses. Repealing this tax is going to be one of my top priorities in 2025, and I’m proud to have the support of 170 of my colleagues.��

51�Թ���: The estate tax is imposed on family-owned businesses when ownership of the business passes to the next generation following the death of an owner. As you mentioned, the TCJA doubled the exemption threshold, excluding more assets from taxation and thus reducing the burden of the estate tax on businesses. Why is this important and what is Congress doing to preserve this higher threshold?��

Rep. Feenstra: Over the years, various bills have taken steps toward providing relief for taxpayers hit by the death tax. The Tax Cuts and Jobs Act was one of the largest expansions of that relief, significantly reducing the number of family businesses hit by the tax and reducing the tax burden for those businesses that still are. People often don’t realize that businesses over many generations can accumulate assets that can put them over the asset threshold, but that doesn’t mean these businesses have a lot of cash on hand. So when they’re hit with millions in new taxes, that can sink an already cash-strapped business. Fortunately, because of the doubling of the exemption amount, far fewer businesses face that threat. As long as any family business does face that threat, we still have work to do.��

51�Թ���: At the end of 2025, the estate tax is scheduled to be reduced by half, subjecting more of family-owned manufacturers’ assets to taxation and increasing their estate tax liability. As the Ways and Means Committee and tax teams continue meeting with businesses around the country, what are you hearing on the impact this change would have?��

Rep. Feenstra: Two things: A lot more people would be hit by the death tax, and the people who are hit would be paying a much higher tax. These are small family businesses we are talking about, and if the current exemption amount is allowed to return to half its current value, that means the size of the businesses getting hit are much smaller than they are today. People often think of farms, and that’s certainly true, but as you know, manufacturers are hit, family-owned restaurants, auto dealers, you name it. As we go into 2025, we need to be focused on policies that support growth and help these businesses succeed, not create costly obstacles for them to overcome. If the exemption amount falls to its pre–Tax Cuts and Jobs Act level, that’s a lot of new businesses that are going to be hit by this tax.

A draft Department of Homeland Security rule that certain sectors expedite cyber-incident reporting has several shortcomings that must be addressed before the rule becomes final in the fall of 2025, the 51�Թ��� told Rep. Andrew Garbarino (R-NY) in a meeting this week.

What’s going on: Rep. Garbarino, chair of the House Homeland Security Subcommittee on Cybersecurity and Infrastructure Protection, met with manufacturers and the 51�Թ��� Technology Policy Committee Tuesday to talk cybersecurity issues.

• Much of the discussion focused on draft rulemaking published in April by the DHS’s Cybersecurity and Infrastructure Security Agency. It would require “covered entities” in “critical infrastructure sector[s]” to report any major cybersecurity incidents to CISA within 72 hours.
• Under the Cybersecurity Incident Reporting for Critical Infrastructure Act, CISA must finalize the rule by October 2025.

Why it’s a problem: The 51�Թ��� agrees with the concerns Rep. Garbarino raised with CISA, including:

• The burden associated with imposing onerous reporting mandates on companies recovering from cyberattacks;
• An overbroad scope, which forces into compliance both organizations that are not truly “critical infrastructure” and those that are too small to have the resources needed to complete the required actions;
• An overbroad definition of incidents requiring reporting;
• An excessive amount of required information;
• An unreasonably high cost of compliance and the diversion of resources away from cyber-incident response; and
• The risk that the proposed rule will jeopardize CISA’s role as a trusted partner of industry.

51�Թ��� in action: The 51�Թ��� submitted in response to CISA’s proposal earlier this year outlining these concerns, as well as calling for a reduction in both the number of entities required to file incident notifications and the number of incidents they have to report.

The 51�Թ��� says: “CISA needs to significantly rethink its approach to CIRCIA’s implementation,” said 51�Թ��� Senior Director of Technology Policy Franck Journoud.

• “The proposed rule requires far too much information about far too many incidents from far too many companies. CISA should not mandate that companies under attack from hackers divert precious security resources to generate mountains of incident data that CISA will not have the means to process or act upon.”

Take precautions: If you are looking to strengthen your company’s cyber protections, check out , an affordable, broad security program for 51�Թ��� members that provides proactive monitoring with automated alerts at no extra cost.

Less than three months after scoring a�� for manufacturers against Securities and Exchange Commission overreach, the 51�Թ��� was back in front of Congress to urge regulatory oversight of proxy advisory firms.

What’s going on: On Tuesday, the 51�Թ��� before the House Financial Services Oversight and Investigations Subcommittee on the need to bring oversight and accountability to proxy advisory firms. These are entities that make recommendations regarding the way shareholders should vote on proxy ballot proposals brought before publicly traded companies.

• “Proxy firms are powerful, unaccountable actors that pose a real threat to Americans’ financial security. Manufacturers have been subject to these firms’ outsized influence for far too long,” 51�Թ��� Vice President of Domestic Policy Charles Crain during Tuesday’s hearing.

The background: In 2020, the SEC finalized an 51�Թ���-supported rule instituting important proxy reforms, such as requiring proxy firms to disclose any conflicts of interest. The 51�Թ��� has fought in court to preserve the 2020 rule, successfully defeating the SEC’s attempts to the rule and to its most crucial provisions. The 51�Թ��� is now back in court in a third case, defending the SEC’s authority to regulate these powerful market actors.

Surrendering to ISS: Institutional Shareholder Services Inc., the largest and most influential proxy advisory firm, is now “suing the SEC over its authority to issue the 2020 rule—not just the rule’s particulars, but the SEC’s ability to regulate proxy firms at all,” Crain continued.

• Troublingly, “the SEC is waving the white flag in the face of [the] challenge,” he told lawmakers, referring to the agency’s decision not to appeal after a district court sided with ISS earlier this year.

“Sole defender”: The 51�Թ���—now the “sole defender of the 2020 rule”—is appealing the district court’s decision.

What Congress should do: Legislators must take up the mantle, too, Crain concluded.

• “Congress should do what the SEC will not: affirm the SEC’s clear authority, provide much-needed oversight and accountability and help manufacturers and Main Street investors escape the outsized influence of proxy advisory firms.”

Congress should preserve tax reform’s changes to the estate tax, protecting family-owned manufacturers from tax increases scheduled for the end of 2025, according to a new published by the 51�Թ��� as part of its “” tax campaign.

The background: In 2017, tax reform doubled the value of assets that could be exempt from the estate tax, a levy imposed on family businesses upon the death of their owners, when proprietorship passes to the next generation.

What’s going on: This valuation threshold is scheduled to be cut in half at the end of 2025, subjecting more assets of family-owned manufacturers to taxation and increasing these companies’ tax liability.

Why it’s important: A bigger tax burden would threaten the continued existence of family-owned companies and make it more difficult to pass family businesses on to the next generation.

• These firms could be forced to liquidate operation-critical assets, such as facilities and equipment, in order to pay the estate tax.
• An increased estate tax bill could mean that family-owned manufacturers are forced to take on debt, limit operations, reduce employee headcount or close entirely following the death of a loved one.

What else is at risk: Some legislators have floated the idea of repealing or limiting stepped-up basis, which stops a business owner’s heirs from being forced to pay capital gains taxes on asset appreciation that took place while the owner was alive.

What must be done: “Congress must preserve tax reform’s increased estate tax exemption threshold and maintain stepped-up basis,” said 51�Թ��� Vice President of Domestic Policy Charles Crain.

• “Protecting family-owned manufacturers from the estate tax will prevent these small businesses from incurring costly and damaging tax bills that threaten their viability following the death of a loved one.”