General

Exxon Mobil is urging the Supreme Court to hear a Colorado case that allowed a local climate change lawsuit against it and Suncor Energy to advance in state—rather than federal—court (POLITICO Pro’s CLIMATEWIRE, subscription).

What’s going on: The two companies “filed a petition with the high court Friday, asking it to review a Colorado Supreme Court decision that allowed a climate lawsuit brought against the companies by a local city and county to proceed to state court.”

• The petition, which holds that climate change is a federal matter, says that by reviewing the state court’s decision, the high court could “determine whether dozens of similar lawsuits filed in state courts should be heard in federal court.”
• The Supreme Court hears approximately 1% of the petitions it receives.

Why it’s important: “No state has the authority to govern, let alone impose liability on, the production and use of energy in other states and countries around the world,” Phil Goldberg, special counsel for the NAM’s Manufacturers’ Accountability Project, told the news outlet, adding that such litigation “could impose significant and unwarranted costs on all American consumers for their essential energy needs.” The Colorado case is one of more than 20 such lawsuits that have been brought by states and municipalities.

• In May, the Colorado Supreme Court sided with the local Colorado governments, “rejecting the industry’s contention that the lawsuit involves global greenhouse gas emissions and should be barred by federal law.”
• Next month, the NAM Legal Center will file an amicus brief urging the Supreme Court to grant certiorari and resolve this longstanding issue.

Other recent cases: In March, the Supreme Court rejected a request by 19 Republican state attorneys general to end a set of climate suits against the traditional energy sector.

• And in January, the high court declined to hear an appeal from energy companies to dismiss a lawsuit by Honolulu, Hawaii, alleging they had misled the public for years about the perils of climate change.
• Meanwhile, earlier this month a South Carolina court dismissed a climate change lawsuit against oil and gas companies by the city of Charleston.

New White House, new priorities: While the previous administration asked the court not to intervene in the cases, the current one “has aggressively sought to curtail the lawsuits, starting with an executive order in April that targeted state climate efforts.”

• It has also filed preemptive suits against Hawaii and Michigan, seeking to stop those states from going to court.

Manufacturers in Pennsylvania and New Jersey welcomed Republican representatives to their facilities this week, thanking them for delivering a landmark victory for manufacturers: the passage of H.R. 1.

• House Republican Conference Chairwoman Lisa McClain (R-MI) and local Reps. Tom Kean (R-NJ-7), Rob Bresnahan (R-PA-8) and Ryan Mackenzie (R-PA-7) participated in the factory tours as part of Chairwoman McClain’s One Big Beautiful Tour.

NAM in action: NAM Executive Vice President Erin Streeter accompanied lawmakers, highlighting how the Manufacturing Law is already having positive impacts on local manufacturing.

• “Manufacturing is the backbone of the American economy—and with the leadership of Chairwoman McClain, Reps. Kean, Bresnahan, Mackenzie and their colleagues in Congress—that foundation is stronger than ever,” Streeter said following the visits.
• “By championing the Manufacturing Law, Congress has protected nearly 6 million jobs and more than $500 billion in wages for hardworking Americans. We thank them for their leadership.”

New Jersey: Chairwoman McClain and Rep. Kean toured Bihler of America , a manufacturer of precision automation systems in Phillipsburg, New Jersey. The company specializes in complex metal stamping, forming and assembly solutions, serving industries such as automotive, medical and consumer products.

• “Manufacturers thrive when we have the certainty we need to plan major investments in our facilities and our people. That’s exactly what this tax package delivers,” said Bihler CEO Maxine Nordmeyer.
• “We thank our partners in Congress and the administration—and we look forward to working with them on a full comprehensive manufacturing strategy. Through energy, trade and workforce policies that drive our competitiveness, deliver certainty and empower manufacturers, we will build on the success of the One Big Beautiful Bill.”

Pennsylvania: Rep. Bresnahan joined Chairwoman McClain for a tour of i2M , a manufacturer of flexible polymers in Mountain Top, Pennsylvania. The company produces custom polymer films and sheets used in a variety of applications, including agriculture, construction, packaging and geomembranes.

• “Manufacturers are innovators. By restoring immediate R&D expensing for manufacturers across America [a key provision of the OBBBA], Congress has empowered manufacturers like i2M to innovate and create,” said i2M Founder Chris Hackett.
• “That’s how we keep our competitive edge—not just as a company, but as a country.”

Pennsylvania, round 2: At another stop in the Keystone State, Rep. Mackenzie joined the tour at U.S. Metal Powders in Palmerton. The visit highlighted the company’s recent expansion, including a new state-of-the-art production line that will create new jobs and boost aluminum powder output for global markets.

• “Thanks to this transformative tax legislation, U.S. Metal Powders has already broken ground on adding another production line—which will soon double the company’s workforce. This is pro-growth tax policy in action,” Pennsylvania Manufacturers’ Association President and CEO David N. Taylor said in response to the visit.

NAM in the news: The White House’s rapid response account on X highlighted Rep. Bresnahan’s visit to Pennsylvania and appearance on the area’s local Fox affiliate.

• Fox Business Network’s Maria Bartiromo cited the NAM’s partnership on the tour in an interview with Chairwoman McClain.
• The House GOP X account shared a video of Streeter talking about the facility visits.
• Chairwoman McClain posted about her visits to Bihler of America, i2M and U.S. Metal Powders on X. Chairwoman McClain, along with Reps. Bresnahan and Kean, also amplified the NAM’s own social posts.
• WVIA covered the visit to i2M.

Both houses of Congress have moved to reaffirm support for the Environmental Protection Agency’s ENERGY STAR program, which has been rumored to be on the chopping block for months under the new administration (E&E News, subscription).

• The ENERGY STAR program sets efficiency standards for a range of products and materials, including air conditioners and heat pumps, allowing them to display the program’s logo if they meet the criteria.

Appropriations: The Senate Appropriations Committee approved legislation this week that “would give [ENERGY STAR] … $36 million in fiscal 2026, roughly the same amount it is receiving this year.”

• Meanwhile, the House Appropriations Committee approved its own version of the spending bill, setting “a minimum funding level at $32 million for [ENERGY STAR].”

What’s next: Congress will need to approve funding legislation for fiscal year 2026 by Sept. 30 to continue to fund this popular program.

The NAM in action: In June, the NAM and dozens of partner associations told legislators of the importance of ENERGY STAR to their industries, saying “electricity saved by ENERGY STAR helps free up space on the grid needed so the U.S. can lead the world to power and grow artificial intelligence, support the burgeoning crypto asset industry and bring more manufacturing plants back to our shores.”

The last word: “ENERGY STAR is a critical and popular voluntary program that benefits manufacturers that make more energy-efficient products,” said NAM Director of Energy and Resources Policy Michael Davin.

• “Both consumers and manufacturers benefit from its existence, and we applaud Congress for affirming their support for maintaining the program.”

The Conference Board Leading Economic Index for the U.S. edged down 0.3% to 98.8 in June, after staying the same in May. Over the past six months, the LEI has fallen 2.8%, much faster than the 1.3% rate of decline in the prior six months. For the second month in a row, a recovery in stock prices helped buoy the index but was again not enough to offset falling consumer confidence, weak new orders in manufacturing and rising claims for unemployment insurance.

Additionally, the index’s further decline in June puts the six-month growth rate into more negative territory, triggering the index’s recession signal for the third month in a row. Furthermore, a tariff-influenced slowdown in consumer spending is becoming more apparent. Nevertheless, the Conference Board does not anticipate a recession in 2025, although it expects a significant slowdown in economic growth compared to 2024, with U.S. GDP growth forecasted at 1.6%.

Meanwhile, the Coincident Economic Index ticked up 0.3% to 115.1 in June, after no change in May and April. As a result, the CEI has grown 0.8% in the past six months, down from the 1.0% growth rate over the previous six months. The Lagging Economic Index stayed the same in June at 119.9 and has risen 1.4% over the past six months, fully recovering from a 0.8% decline over the previous six months.

Existing home sales decreased 2.7% in June and stayed the same over the year. Housing inventory slipped slightly to 1.53 million units, reflecting a 0.6% decline from May but a 15.9% jump from last year. The median existing home price was $435,300, up 2.0% from last year. The Northeast, Midwest and South registered decreases in existing home sales, while the West posted a modest monthly increase.

Single-family home sales fell 3.0% in June but were up 0.6% over the year, with the median price increasing 2.0% from June 2024 to $441,500. Condo and co-op sales stayed the same over the month at 360,000 units in June, but fell 5.3% from last year. Meanwhile, the median price for condos and co-ops rose 0.8% from the prior year to $374,500.

Homes were typically on the market for 27 days in June, unchanged from May but up from 22 days in June 2024. First-time buyers made up 30% of sales in June, the same as May but up from 29% at the same time last year.

The S&P Global Flash U.S. Manufacturing PMI slipped from 52.9 to 49.5 in July, a seven-month low and below the 50-point marker that signals growth in business conditions. Factory production slowed as new orders fell for the first time this year, being adversely impacted by declines in export orders. Inventories dropped as manufacturers started utilizing some of their holdings that they stockpiled in May and June. Meanwhile, supplier delivery times quickened due to reduced pressure on supply chains. Input costs rose at the second-fastest pace since January 2023 but cooled slightly from June’s post-pandemic peak. Meanwhile, manufacturers’ selling prices grew at the second highest rate since November 2022. Nearly two-thirds of manufacturers linked rising input costs to tariffs, while just under half of respondents linked increased selling prices to tariffs.

Overall business activity rose to a seven-month high, rising from 52.9 in June to 54.6 in July. This growth was isolated mainly to the services sector, wherein business activity rose at the highest rate so far this year, while the manufacturing sector grew more sluggish, making overall growth uneven across the economy. In fact, overall new order growth picked up, with new service sector business more than offsetting a slight drop in factory orders. As seen in manufacturing, prices also increased sharply in services, rising at the second-steepest pace since April 2023.

Meanwhile, optimism about future business conditions dipped again in July, reflecting fears about tariffs and cuts to state funding following federal government policy changes. Even in manufacturing responses, any perceived benefits of import tariffs are outweighed by anxieties about higher prices.

Manufacturing activity in the Fifth District deteriorated in July, at a faster pace than the previous month, with the composite manufacturing index dropping from -8 to -20. Meanwhile, the local business conditions index improved but remained in negative territory, rising from -17 in June to -11 in July. Additionally, manufacturers are still pessimistic about the future, but less so than in the prior month, with the outlook for future local business conditions rising from -7 in June to -2 this month. The Fifth Federal Reserve District consists of Virginia, Maryland, the Carolinas, the District of Columbia and most of West Virginia.

Among its components, shipments, new orders and employment all remained negative and contracted at a faster pace than in June, dropping to -18, -25 and -16, respectively. The vendor lead time index decreased from 15 to 7. Meanwhile, the share of firms reporting backlogs also worsened, falling from -18 to -30. On the other hand, the average growth rate of prices paid and prices received both declined some.

Looking ahead, firms still expect both price indexes to rise in the next 12 months at a slightly faster pace than forecasted in June. Expectations for future shipments increased from 6 to 11, and new orders ticked up from 6 to 9. Expectations for backlogs also improved, moving from -17 to -9. Meanwhile, firms maintained a cautious approach to equipment and software spending. Expectations for capital expenditures also worsened to -19 from -17. In sum, businesses in the Fifth District are cautiously optimistic about prospects for future growth but are still avoiding making new investment plans.

Manufacturing activity ticked up slightly in the Tenth District in July, with the month-over-month composite index up three points to 1. Meanwhile, expectations for future activity remained expansionary but slipped one point to 8. The Tenth Federal Reserve District encompasses the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico. The month-over-month rise in activity was due primarily to increases in nondurable manufacturing, while durable manufacturing continued to fall. New orders modestly increased and turned positive. On the other hand, production contracted. Shipments rose, but at a slower pace than the prior month, falling from 8 to 3. Meanwhile, employment and new orders for exports declined and at a faster pace than in June.

Production fell from 5 to -3, while new orders inched up from -2 to 2. New export orders decreased from -10 to -15 over the month. Employment slumped again in July, falling from -8 to -11, and the average employee workweek also became more negative, declining from -5 to -9. The backlog of orders plummeted from -11 to -30. Both prices received and prices paid for raw materials eased month-over-month, with raw material prices slipping from 51 to 47 and prices received decreasing three points to 18. Over the year, prices received ticked down four points to 58, while prices for raw materials fell from 75 to 67.

In July, survey respondents were asked about profitability and passthrough ability, and the responses on changes in firms’ profit margins were mixed. Thirty-five percent of firms reported slight decreases in profit margins compared to the previous quarter, while 21% reported a significant decline. Meanwhile, 21% reported no change and 20% reported a slight increase. Just 3% of respondents reported a significant increase. When firms were asked about their ability to pass along the costs of rising input prices on to consumers, one-third of firms (33%) shared a slightly increased ability, while another 33% reported no change in passthrough ability. On the other hand, 31% cited an increased hardship passing along higher costs, while 3% found considerably increased ability to pass along prices. Looking to the next 12 months, 32% of firms expect their margins to decrease slightly, 10% expect significant declines, 26% expect no change, 29% expect a slight increase and 3% expect significant increases.

Building permits improved 0.2% in June but fell 4.4% over the year. Permits for single-family homes in June declined 3.7% from May and 8.4% over the year. On the other hand, permits for buildings with five or more units increased 8.1% from May and 2.1% over the year.

In June, housing starts increased 4.6% from May but fell 0.5% from June 2024. Starts for single-family homes declined 4.6% from May and 10.0% over the year. On the other hand, starts for buildings with five or more units soared 30.6% over the month and 25.8% over the year.

Meanwhile, housing completions plummeted 14.7% over the month and 24.1% over the year. Single-family home completions declined 12.5% from May and 15.5% from June 2024. Completions for buildings with five or more units plunged 21.0% over the month and fell 39.8% from one year ago.

U.S. import prices inched up 0.1% in June, after slipping 0.4% in May, with higher nonfuel prices offsetting lower fuel prices. Over the past year, import prices decreased 0.2%. Meanwhile, U.S. export prices increased 0.5% in June, with nonagricultural and agricultural export prices both rising. Over the past year, export prices increased 2.8%.

In June, U.S. import prices for manufacturing rose just 0.2% over the year, but with significant divergences in prices across the industry. Petroleum and coal products manufacturing experienced the most significant over-the-year U.S. import price declines in June, falling 19.0%. On the other hand, the greatest yearly increase in U.S. import prices occurred in primary metal manufacturing, which rose 10.2% from June 2024. Meanwhile, U.S. export prices for manufacturing in June increased 3.4% over the year.

Fuel import prices fell 0.7% over the month in June, following declines of 5.0% in May and 2.6% in April. Lower prices for natural gas more than offset petroleum prices. Prices for fuel imports plummeted 15.7% from June 2024. Import prices for petroleum ticked up 0.1% over the month in June but fell 16.6% from last year. Meanwhile, natural gas prices plunged 26.8% in June but jumped 37.4% over the year.

Nonfuel import prices increased 0.1% in June, after staying the same in May. Higher prices for nonfuel industrial supplies and materials and consumer goods more than offset lower prices for automotive vehicles and foods, feeds and beverages. The price index for nonfuel imports grew 1.2% over the past year and has not declined on a year-over-year basis since February 2024.

After rising 0.3% in May, agricultural export prices increased 0.8% in June, the largest monthly increase since a 2.1% increase in October 2024. Over the past 12 months, agricultural export prices increased 1.5%. Meanwhile, nonagricultural export prices increased 0.5% in June. Higher prices for nonagricultural industrial supplies and materials, consumer goods and automotive vehicles more than offset higher prices for capital goods. Over the past year, nonagricultural export prices advanced 2.9%.