PMI Index jumps to nine-month high

Manufacturing growth shows an across-the-board increase in January

02/01/2013


Institute of Supply Management logo. Courtesy: ISMA sharp jump in January's PMI Index got the manufacturing sector off on the right foot for 2013.

The monthly manufacturing index was at 53.1% in January, higher than analysts predicted and 2.9 percentage points higher than the December 2012 figure. It marked the 11th month out of the last 12 that the index was above the 50% mark that indicates growth in manufacturing, and it was the highest level since the index hit 54.1% in April 2012.

"Manufacturing is starting out the year on a positive note, with all five of the PMI's component indexes - new orders, production, employment, supplier deliveries and inventories - registering above 50% in January," said Bradley J. Holcomb, chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The past relationship between the PMI and the overall economy indicates that the PMI for January corresponds to a 3.4% increase in real gross domestic product on an annualized basis."

The survey quotes several manufacturers as saying the manufacturing sector continues to be solid, if still a little uncertain.

"Fiscal cliff, uncertainty in general and EU economic weakness are factors causing our customers to be very tentative with commitments for product purchases in 2013," said one machinery manufacturer.

"Housing sales are trending upward in light of overall market uncertainty, translating to improving optimism in appliance market," said an appliance manufacturer."

"The general theme developing in our industry is that we can move suitable volumes. However, profit margin is elusive," added a wood products manufacturer.

The ISM's New Orders Index was at 53.3%, reversing a month of contraction in December and representing a 3.6 percentage point increase over the previous month. The production and employment indexes also were up for January, with the employment index higher for the 40th consecutive month.

The index also tracks growth in the overall economy, with a figure above 42.2% indicating growth. The PMI was above that level for the 44th consecutive month.

THE LAST 12 MONTHS



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Big Data and IIoT value; Monitoring Big Data; Robotics safety standards and programming; Learning about PID
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me