Manufacturing has grown for the past 5 months: Institute for Supply Management

ISM says new orders, production, and employment are growing while inventories are contracting.

01/06/2010


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Economic activity in the manufacturing sector expanded in December for the fifth consecutive month, and the overall economy grew for the eighth consecutive month, according to the latest Manufacturing ISM Report On Business, issued by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee.

"The manufacturing sector grew for the fifth consecutive month in December as the PMI rose to 55.9 percent, its highest reading since April 2006 when it registered 56 percent," Ore said. "This month's report is quite strong as both the New Orders and Production Indexes are above 60 percent. The sector may be benefiting from an excessive destocking cycle as indicated by the recent performance of the Customers' Inventories Index. Customers' inventories have been 'too low' for nine consecutive months, and this month's index is the lowest reading since the inception of the index in January 1997. Overall, the recovery in manufacturing is continuing, but there are still some industries mired in the downturn as evidenced by the seven industries still in decline."

Growth by industry

In December, nine of the 18 manufacturing industries reported growth. The industries - listed in order - are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Machinery; Electrical Equipment, Appliances & Components; Transportation Equipment; Paper Products; Furniture & Related Products; and Food, Beverage & Tobacco Products. The seven industries reporting contraction in December - listed in order - are: Wood Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Plastics & Rubber Products; Chemical Products; Printing & Related Support Activities; and Fabricated Metal Products.
Read more; see tables at: www.ism.ws/ISMReport/MfgROB.cfm

Also read:

- Manufacturing remains the core of U.S. economic success ; and

- Positive signs for manufacturing continue .

 

- Edited by Mark T. Hoske, editor in chief, Control Engineering , www.controleng.com





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