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Contact:

Kristina Cahill
Report On Business® Analyst
ISM®, ROB/Research Manager
Tempe, Arizona
480-752-6276, Ext. 3015
E-mail: kcahill@instituteforsupplymanagement.org

 

DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report’s information reflects the entire United States, while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report.


 

September 2018 Manufacturing ISM® Report On Business®

PMI® at 59.8%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Slower Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Slower Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in September, and the overall economy grew for the 113th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The September PMI® registered 59.8 percent, a decrease of 1.5 percentage points from the August reading of 61.3 percent. The New Orders Index registered 61.8 percent, a decrease of 3.3 percentage points from the August reading of 65.1 percent. The Production Index registered 63.9 percent, a 0.6 percentage point increase compared to the August reading of 63.3 percent. The Employment Index registered 58.8 percent, an increase of 0.3 percentage point from the August reading of 58.5 percent. The Supplier Deliveries Index registered 61.1 percent, a 3.4-percentage point decrease from the August reading of 64.5 percent. The Inventories Index registered 53.3 percent, a decrease of 2.1 percentage points from the August reading of 55.4 percent. The Prices Index registered 66.9 percent in September, a 5.2-percentage point decrease from the August reading of 72.1 percent, indicating higher raw materials prices for the 31st consecutive month.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 17th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, but at lower levels compared to the previous month. Consumption improved, with production and employment continuing to expand, at higher levels compared to August, despite shortages in labor and materials. Inputs — expressed as supplier deliveries (decreased), inventories and imports — improved compared to the previous month’s activity. But continued supply chain inefficiencies led to an increased consumption of inventory and a slight expansion of imports, which adequately supported production output. Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue to limit potential, but at more manageable levels.

“Export orders expanded, but four major industries are no longer contributing. Price pressure continues, but the index softened for the fourth straight month and dropped below 70 for the first time since December 2017. Demand remains robust, but employment resources and supply chains continue to struggle, but to a lesser degree. Respondents are again overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations,” says Fiore.

Of the 18 manufacturing industries, 15 reported growth in September, in the following order: Textile Mills; Miscellaneous Manufacturing; Plastics & Rubber Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Machinery; Apparel, Leather & Allied Products; Paper Products; Electrical Equipment, Appliances & Components; Chemical Products; Petroleum & Coal Products; Transportation Equipment; Furniture & Related Products; Fabricated Metal Products; and Nonmetallic Mineral Products. The only industry reporting contraction in September is Primary Metals.

WHAT RESPONDENTS ARE SAYING

  • “The market is in a state of chaos with the latest round of tariffs. As an electronics original equipment manufacturer, our component prices have been impacted almost across the board. The tariffs have caused a mass rush to buy up inventories of affected products in order to minimize the long-term financial impact. This, in turn, is causing market constraints, which further drive up the cost and increase lead times.” (Computer & Electronic Products)
  • “Tariffs starting to take a bite out of profitability.” (Chemical Products)
  • “Business is strong and relatively stable. Tariffs are putting pressure on Chinese imports. Labor rates are increasing as it is very difficult to find help.” (Furniture & Related Products)
  • “The economy's strength is holding [and] outlook for the industry is positive, although continuing margin compression in consumer packaged goods is restricting general growth momentum from the greater economy.” (Food, Beverage & Tobacco Products)
  • “Still extremely strong through November; starting to see a decline for steel prices for December.” (Fabricated Metal Products)
  • “General available capacity at suppliers continues to decrease, creating supply issues.” (Machinery)
  • “Tariffs are creating a drag on some of our export opportunities.” (Plastics & Rubber Products)
  • “Sourcing hourly workers for remote locations continues to be a challenge for both full-time and part-time opportunities. Have implemented a wide variety of recruiting techniques and suppliers to aid us in sourcing this hard-to-find talent.” (Paper Products)
  • "Orders are coming in, but from a limited number of customers. The future looks very promising.” (Primary Metals)
  • “Suppliers are impacted by China tariffs, [which is] delaying or cancelling manufacturing transfer projects.” (Miscellaneous Manufacturing)

MANUFACTURING AT A GLANCE
September 2018

Index Series Index Sep Series Index Aug Percentage Point Change Direction Rate of Change Trend* (Months)
PMI® 59.8 61.3 -1.5 Growing Slower 25
New Orders 61.8 65.1 -3.3 Growing Slower 33
Production 63.9 63.3 +0.6 Growing Faster 25
Employment 58.8 58.5 +0.3 Growing Faster 24
Supplier Deliveries 61.1 64.5 -3.4 Slowing Slower 24
Inventories 53.3 55.4 -2.1 Growing Slower 9
Customers' Inventories 40.5 41.0 -0.5 Too Low Faster 24
Prices 66.9 72.1 -5.2 Increasing Slower 31
Backlog of Orders 55.7 57.5 -1.8 Growing Slower 20
New Export Orders 56.0 55.2 +0.8 Growing Faster 31
Imports 54.5 53.9 +0.6 Growing Faster 20
OVERALL ECONOMY Growing Slower 113
Manufacturing Sector Growing Slower 25

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

August 2018 Manufacturing ISM® Report On Business®

PMI® at 61.3%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Slower Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in August, and the overall economy grew for the 112th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The August PMI® registered 61.3 percent, an increase of 3.2 percentage points from the July reading of 58.1 percent. The New Orders Index registered 65.1 percent, an increase of 4.9 percentage points from the July reading of 60.2 percent. The Production Index registered 63.3 percent, a 4.8-percentage point increase compared to the July reading of 58.5 percent. The Employment Index registered 58.5 percent, an increase of 2 percentage points from the July reading of 56.5 percent. The Supplier Deliveries Index registered 64.5 percent, a 2.4-percentage point increase from the July reading of 62.1 percent. The Inventories Index registered 55.4 percent, an increase of 2.1 percentage points from the July reading of 53.3 percent. The Prices Index registered 72.1 percent in August, a 1.1-percentage point decrease from the July reading of 73.2 percent, indicating higher raw materials prices for the 30th consecutive month.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 16th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, at higher levels compared to the previous month. Consumption improved, with production and employment continuing to expand, at higher levels compared to July, despite shortages in labor and materials. Inputs (expressed as supplier deliveries, inventories and imports) expanded strongly due to continuing supply chain inefficiencies, positive increases in inventory levels and a slight easing of imports. Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue, but at more manageable levels.

“Export orders expanded at stable levels. Prices pressure continues, but the index softened for the third straight month and remains above 70. Demand is still robust, but the nation’s employment resources and supply chains continue to struggle. Respondents are again overwhelmingly concerned about tariff-related activity, including how reciprocal tariffs will impact company revenue and current manufacturing locations. Panelists are actively evaluating how to respond to these business changes, given the uncertainty,” says Fiore.

Of the 18 manufacturing industries, 16 reported growth in August, in the following order: Computer & Electronic Products; Apparel, Leather & Allied Products; Textile Mills; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Furniture & Related Products; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; and Printing & Related Support Activities. The two industries reporting contraction in August are: Wood Products; and Primary Metals.

WHAT RESPONDENTS ARE SAYING

  • “Busy for new orders, but the cost of raw material chemicals keeps going up.” (Chemical Products)
  • “We have seen a slight uptick in international business. Suppliers do not seem to know how to handle the recently imposed tariffs. Most are waiting to re-evaluate potential price increases until September.” (Computer & Electronic Products)
  • “Generally high levels of demand continue, and [we are] planning for this elevated rate through the rest of the year.” (Transportation Equipment)
  • “Suppliers appear to be bracing us for cost increases, given increased talk of tariffs and inflation. We are budgeting for 2019 accordingly.” (Food, Beverage & Tobacco Products)
  • “The toughest thing we deal with is the unknown. Dealing with tariffs on steel purchases and not knowing if or when they will end makes planning difficult. We are entering the period when we begin our pricing negotiations for next year and will likely treat the tariffs as if they will be here for the entire year. It’s challenging, but not insurmountable.” (Fabricated Metal Products)
  • “Business is positive, new equipment sales and inquiries are strong, and the parts business is strong. Raw material costs, especially steel, appear to be leveling off. Cost of manufactured components has also leveled off. Most suppliers are willing and able to suppress cost increases. Tariff impacts are still a concern.” (Machinery)
  • “Business continues to be strong. We anticipate growth in the next few months.” (Plastics & Rubber Products)
  • "Business conditions are strong. Orders are up. Purchase prices are up. Unemployment is down.” (Miscellaneous Manufacturing)
  • "Continued strong demand has most locations in a sold-out market, putting pressure on our facilities to produce and have strong uptime. Purchasing is under pressure to provide critical parts in a market where lead times have increased.” (Nonmetallic Mineral Products)
  • “Steel tariffs and their threats are putting upward pressure on downstream materials.” (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
August 2018

Index Series Index Aug Series Index Jul Percentage Point Change Direction Rate of Change Trend* (Months)
PMI® 61.3 58.1 +3.2 Growing Faster 24
New Orders 65.1 60.2 +4.9 Growing Faster 32
Production 63.3 58.5 +4.8 Growing Faster 24
Employment 58.5 56.5 +2.0 Growing Faster 23
Supplier Deliveries 64.5 62.1 +2.4 Slowing Faster 23
Inventories 55.4 53.3 +2.1 Growing Faster 8
Customers’ Inventories 41.0 39.4 +1.6 Too Low Faster 23
Prices 72.1 73.2 -1.1 Increasing Slower 30
Backlog of Orders 57.5 54.7 +2.8 Growing Faster 19
New Export Orders 55.2 55.3 -0.1 Growing Slower 30
Imports 53.9 54.7 -0.8 Growing Slower 19
OVERALL ECONOMY Growing Faster 112
Manufacturing Sector Growing Faster 24

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

July 2018 Manufacturing ISM® Report On Business®

PMI® at 58.1%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Slower Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Slower Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in July, and the overall economy grew for the 111th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The July PMI® registered 58.1 percent, a decrease of 2.1 percentage points from the June reading of 60.2 percent. The New Orders Index registered 60.2 percent, a decrease of 3.3 percentage points from the June reading of 63.5 percent. The Production Index registered 58.5 percent, a 3.8 percentage point decrease compared to the June reading of 62.3 percent. The Employment Index registered 56.5 percent, an increase of 0.5 percentage point from the June reading of 56 percent. The Supplier Deliveries Index registered 62.1 percent, a 6.1 percentage point decrease from the June reading of 68.2 percent. The Inventories Index registered 53.3 percent, an increase of 2.5 percentage points from the June reading of 50.8 percent. The Prices Index registered 73.2 percent in July, a 3.6 percentage point decrease from the June reading of 76.8 percent, indicating higher raw materials prices for the 29th consecutive month.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 15th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, but at lower levels. Production and employment continues to expand in spite of labor and material shortages. Inputs — expressed as supplier deliveries, inventories and imports — had expansion increases, due primarily to negative supply chain issues, but at easing levels compared to the prior month. Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue. Export orders expanded, but at lower levels. Price pressure remains strong, but the index softened for the second straight month. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle. Respondents are again overwhelmingly concerned about how tariff-related activity, including reciprocal tariffs, will continue to affect their business,” says Fiore.

Of the 18 manufacturing industries, 17 reported growth in July, in the following order: Textile Mills; Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Computer & Electronic Products; Petroleum & Coal Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Machinery; Plastics & Rubber Products; Miscellaneous Manufacturing; Fabricated Metal Products; Food, Beverage & Tobacco Products; Furniture & Related Products; Chemical Products; Wood Products; and Transportation Equipment. The only industry reporting a decrease in July is Primary Metals.

WHAT RESPONDENTS ARE SAYING

  • “Global demand is still strong. Working on contingency plans for the Chinese tariffs. We will probably onshore most of that material. Labor availability is becoming an issue.” (Computer & Electronic Products)
  • “As a result of new tariffs on materials to/from China, we are taking measures to move impacted materials ahead of effective dates, which in some cases is resulting in holding higher inventories.” (Chemical Products)
  • “Steel cost increases are causing a lot of negotiations. The increases are real and will affect costs beginning in the third quarter of 2018.” (Electrical Equipment, Appliances & Components)
  • “Reviewing the business case for importing manufactured parts from China, as new tariffs will lead to increased costs that we will pass along to our domestic customers.” (Transportation Equipment)
  • “Corn and soybean meal costs are reducing. Labor continues to be a struggle to fill open positions.” (Food, Beverage & Tobacco Products)
  • “The steel tariffs are a concern to us. We have already seen steel prices increase due to the threat of the tariffs and are seeing kickback from our customers due to the higher prices. We are concerned that the end customer will go to off shore to purchase the finished product.” (Fabricated Metal Products)
  • “Business is moving along at a brisk pace, outperforming the annual plan year-to-date (calendar year financials). However, internationally, nationally and locally, we are finding many manufacturers behind schedule due to capacity constraints. They are stating their order intake is heavy and/or they cannot find qualified employees to get all the work done.” (Machinery)
  • “Tariffs are [resulting in] customs inspection-time increases on imported raw materials from China. Logistics seems to be improving, but we are seeing a [continuing] tight chemical bulk tanker market.” (Plastics & Rubber Products)
  • "Our customer demand is high, but supply of aluminum is tight. Also, tariffs are negatively affecting our bottom line, as we are unable to pass increases to all of our customers. Plus, we are seeing increases in our construction costs because of the steel price increases. Labor market is extremely tight for professional personnel, plant technicians and support associates.” (Primary Metals)
  • “The so-called trade war is now taking its toll on business activity, resulting in substantial reductions to new export orders. China has all but stopped taking orders, causing inventories to build up in the U.S. Domestic business is steady. However, it is too small to carry the load that export markets have retreated from. As a result, we will be meeting as a corporation next week to recast our second-half sales and revenue projections.” (Wood Products)

MANUFACTURING AT A GLANCE
July 2018

Index Series Index Jul Series Index Jun Percentage Point Change Direction Rate of Change Trend* (Months)
PMI® 58.1 60.2 -2.1 Growing Slower 23
New Orders 60.2 63.5 -3.3 Growing Slower 31
Production 58.5 62.3 -3.8 Growing Slower 23
Employment 56.5 56.0 0.5 Growing Faster 22
Supplier Deliveries 62.1 68.2 -6.1 Slowing Slower 22
Inventories 53.3 50.8 2.5 Growing Faster 7
Customers’ Inventories 39.4 39.7 -0.3 Too Low Faster 22
Prices 73.2 76.8 -3.6 Increasing Slower 29
Backlog of Orders 54.7 60.1 -5.4 Growing Slower 18
New Export Orders 55.3 56.3 -1.0 Growing Slower 29
Imports 54.7 59.0 -4.3 Growing Slower 18
OVERALL ECONOMY Growing Slower 111
Manufacturing Sector Growing Slower 23

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

June 2018 Manufacturing ISM® Report On Business®

PMI® at 60.2

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Slower Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in June, and the overall economy grew for the 110th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The June PMI® registered 60.2 percent, an increase of 1.5 percentage points from the May reading of 58.7 percent. The New Orders Index registered 63.5 percent, a decrease of 0.2 percentage point from the May reading of 63.7 percent. The Production Index registered 62.3 percent, a 0.8 percentage point increase compared to the May reading of 61.5 percent. The Employment Index registered 56 percent, a decrease of 0.3 percentage point from the May reading of 56.3 percent. The Supplier Deliveries Index registered 68.2 percent, a 6.2 percentage point increase from the May reading of 62 percent. The Inventories Index registered 50.8 percent, an increase of 0.6 percentage point from the May reading of 50.2 percent. The Prices Index registered 76.8 percent in June, a 2.7 percentage point decrease from the May reading of 79.5 percent, indicating higher raw materials prices for the 28th consecutive month.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages. Inputs, expressed as supplier deliveries, inventories and imports, had expansion increases, due primarily to negative supply chain issues. Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue. Export orders expanded at higher rates. Price pressure remains strong, but the index saw its first expansion softening since November 2017. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle. Respondents are overwhelmingly concerned about how tariff related activity is and will continue to affect their business,” says Fiore.

Of the 18 manufacturing industries, 17 reported growth in June, in the following order: Textile Mills; Wood Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Paper Products; Transportation Equipment; Furniture & Related Products; Machinery; Primary Metals; Miscellaneous Manufacturing; Chemical Products; Petroleum & Coal Products; and Plastics & Rubber Products. No industry reported a decrease in June compared to May.

WHAT RESPONDENTS ARE SAYING

  • “Business is strong in all regions. Materials are tight. Trucking continues to be a major challenge.” (Chemical Products)
  • “Strong economic growth continues to put pressure/strain on capacity, lead time, availability and pricing across a broadening array of commodities and components.” (Computer & Electronic Products)
  • “U.S. tariff policy and lack of predictability, along with [the] threat of trade wars, [is a] causing general business instability and [is] drag on growth for investments.” (Electrical Equipment, Appliances & Components)
  • “Electronic component supply issues continue to disrupt production.” (Transportation Equipment)
  • “We export to more than 100 countries. We are preparing to shift some customer responsibilities among manufacturing plants and business units due to trade issues (for example, we’ll shift production for China market from the U.S. to our Canadian plant to avoid higher tariffs). Within our company, there is a sense of uncertainty due to potential trade wars.” (Food, Beverage & Tobacco Products)
  • “The Section 232 steel tariffs are now impacting domestic steel prices and capacity. Base steel prices have already increased 20 percent since March.” (Fabricated Metal Products)
  • “Transportation costs are going through the roof right now, which definitely impacts the decisions we’re making with regard to quantities we’re bringing in versus truckload and LTL.” (Furniture & Related Products)
  • “The economy and product demand still continue to be strong. Having trouble finding people [to fill] blue collar positions. Lead times for parts and materials are moving out, and we are seeing commodity cost pressures increases with the threat of tariffs. Additionally, suppliers are asking for more price increases.” (Machinery)
  • “The uncertainty of U.S. tariffs and the Canada/Mexico/E.U. retaliatory tariffs continues to cloud strategic planning efforts. Contingency planning (for tariffs) is consuming large amounts of manpower that could be used for more productive projects. The tariffs are improving margins in our raw material businesses; however, our businesses which are further up the supply chain are seeing significant inflation.” (Miscellaneous Manufacturing)
  • "The steel tariffs continue to drive uncertainty. Projects and services using steel have limited days that prices are good for. Trucking is tight, requiring advanced planning and increasing costs.” (Paper Products)

MANUFACTURING AT A GLANCE
June 2018

Index Series Index Jun Series Index May Percentage Point Change Direction Rate of Change Trend* (Months)
PMI® 60.2 58.7 +1.5 Growing Faster 22
New Orders 63.5 63.7 -0.2 Growing Slower 30
Production 62.3 61.5 +0.8 Growing Faster 22
Employment 56.0 56.3 -0.3 Growing Slower 21
Supplier Deliveries 68.2 62.0 +6.2 Slowing Faster 21
Inventories 50.8 50.2 +0.6 Growing Faster 6
Customers’ Inventories 39.7 39.6 +0.1 Too Low Slower 21
Prices 76.8 79.5 -2.7 Increasing Slower 28
Backlog of Orders 60.1 63.5 -3.4 Growing Slower 17
New Export Orders 56.3 55.6 +0.7 Growing Faster 28
Imports 59.0 54.1 +4.9 Growing Faster 17
OVERALL ECONOMY Growing Faster 110
Manufacturing Sector Growing Faster 22

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

May 2018 Manufacturing ISM® Report On Business®

PMI® at 58.7%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Faster Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 109th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The May PMI® registered 58.7 percent, an increase of 1.4 percentage points from the April reading of 57.3 percent. The New Orders Index registered 63.7 percent, an increase of 2.5 percentage points from the April reading of 61.2 percent. The Production Index registered 61.5 percent, a 4.3 percentage point increase compared to the April reading of 57.2 percent. The Employment Index registered 56.3 percent, an increase of 2.1 percentage points from the April reading of 54.2 percent. The Supplier Deliveries Index registered 62 percent, a 0.9 percentage point increase from the April reading of 61.1 percent. The Inventories Index registered 50.2 percent, a decrease of 2.7 percentage points from the April reading of 52.9 percent. The Prices Index registered 79.5 percent in May, a 0.2 percentage point increase from the April reading of 79.3 percent, indicating higher raw materials prices for the 27th consecutive month.

“Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 or above for the 13th straight month, and the Customers’ Inventories Index remaining at very low levels. The Backlog of Orders Index continued expanding, with its highest reading since April 2004, when it registered 66.5 percent. Consumption, described as production and employment, continues to expand in spite of labor and skill shortages. Inputs, expressed as supplier deliveries, inventories and imports, had expansion declines, due primarily to inventory reductions likely caused by supplier performance issues. Lead-time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue. Export orders expanded at slower rates. The Prices Index is at its highest level since April 2011, when it registered 82.6 percent. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle. Respondents say price pressure at their companies is causing price-increase discussions as we prepare to enter H2.”

Of the 18 manufacturing industries, 16 reported growth in May, in the following order: Textile Mills; Nonmetallic Mineral Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Fabricated Metal Products; Furniture & Related Products; Machinery; Chemical Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Transportation Equipment; Paper Products; and Primary Metals. No industry reported a decrease in PMI® in May compared to April.

WHAT RESPONDENTS ARE SAYING

  • “We are currently overselling our forecast and don’t see an end to the upswing in business. We are very concerned, however, about the tariffs proposed in Section 301 and are focusing on alternatives to Chinese sourcing.” (Transportation Equipment)
  • “Very difficult to hire skilled and unskilled labor.” (Food, Beverage & Tobacco Products)
  • “We are concerned about the strong dollar affecting our export orders as well as the steel tariffs, which are causing domestic steel prices to rise.” (Fabricated Metal Products)
  • “Strong demand from (agricultural) business; solid demand in all other business segments.” (Chemical Products)
  • “Sales remain strong. Lead times and direct material costs are soaring.” (Machinery)
  • “Suppliers are seeing price increases and trying to pass them on.” (Miscellaneous Manufacturing)
  • “Continued talk around steel tariffs has resulted in price increases for domestic line pipe, while HRC seems to be moving sideways. Temporary exemptions for allies and an agreement with South Korea have not calmed the market.” (Petroleum & Coal Products)
  • “Growth seems to be coming in the construction industry, but at a slower pace than expected with delays due to weather in the U.S. Business in (Latin America) is way up, and Canada is off to a decent start.” (Nonmetallic Mineral Products)
  • “Industry demand is causing price increases. Fuel prices are also on the rise, and there have been (price) increases associated with that.” (Primary Metals)
  • “Severe allocation, long lead times and upward price pressure, particularly in the electronic components market, continue to hamper our ability to meet customer demand and our shipping schedule.” (Computer & Electronic Products)

MANUFACTURING AT A GLANCE
May 2018

Index Series Index May Series Index Apr Percentage Point Change Direction Rate of Change Trend* (Months)
PMI® 58.7 57.3 +1.4 Growing Faster 21
New Orders 63.7 61.2 +2.5 Growing Faster 29
Production 61.5 57.2 +4.3 Growing Faster 21
Employment 56.3 54.2 +2.1 Growing Faster 20
Supplier Deliveries 62.0 61.1 +0.9 Slowing Faster 20
Inventories 50.2 52.9 -2.7 Growing Slower 5
Customers’ Inventories 39.6 44.3 -4.7 Too Low Faster 20
Prices 79.5 79.3 +0.2 Increasing Faster 27
Backlog of Orders 63.5 62.0 +1.5 Growing Faster 16
New Export Orders 55.6 57.7 -2.1 Growing Slower 27
Imports 54.1 57.8 -3.7 Growing Slower 16
OVERALL ECONOMY Growing Faster 109
Manufacturing Sector Growing Faster 21

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

April 2018 Manufacturing ISM® Report On Business®

PMI® at 57.3%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Faster Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in April, and the overall economy grew for the 108th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The April PMI® registered 57.3 percent, a decrease of 2 percentage points from the March reading of 59.3 percent. The New Orders Index registered 61.2 percent, a decrease of 0.7 percentage point from the March reading of 61.9 percent. The Production Index registered 57.2 percent, a 3.8 percentage point decrease compared to the March reading of 61 percent. The Employment Index registered 54.2 percent, a decrease of 3.1 percentage points from the March reading of 57.3 percent. The Supplier Deliveries Index registered 61.1 percent, a 0.5 percentage point increase from the March reading of 60.6 percent. The Inventories Index registered 52.9 percent, a decrease of 2.6 percentage points from the March reading of 55.5 percent. The Prices Index registered 79.3 percent in April, a 1.2 percentage point increase from the March reading of 78.1 percent, indicating higher raw materials prices for the 26th consecutive month. Comments from the panel reflect continued expanding business strength. Demand remains strong, with the New Orders Index at 60 or above for the 12th straight month, and the Customers’ Inventories Index remaining at low levels. The Backlog of Orders Index continued expanding, with its highest reading since May 2004, when it registered 63 percent. Consumption, described as production and employment, continues to expand, but has been restrained by labor and skill shortages. Inputs, expressed as supplier deliveries, inventories and imports, declined overall, due primarily to inventory reductions likely led by supplier performance restrictions. Lead time extensions, steel and aluminum disruptions, supplier labor issues, and transportation difficulties continue. Export orders remained strong. The Prices Index is at its highest level since April 2011, when it registered 82.6 percent. In April, price increases occurred across 17 of 18 industry sectors. Demand remains robust, but the nation’s employment resources and supply chains continue to struggle.”

Of the 18 manufacturing industries, 17 reported growth in April, in the following order: Wood Products; Electrical Equipment, Appliances & Components; Fabricated Metal Products; Transportation Equipment; Furniture & Related Products; Paper Products; Machinery; Primary Metals; Nonmetallic Mineral Products; Chemical Products; Computer & Electronic Products; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Printing & Related Support Activities; Miscellaneous Manufacturing; and Apparel, Leather & Allied Products. No industry reported a decrease in PMI® in April compared to March.

WHAT RESPONDENTS ARE SAYING

  • “We are seeing strong sales in the U.S., Europe and Asia.” (Chemical Products)
  • “Business is off the charts. This is causing many collateral issues: a tightening supply chain market and longer lead times. Subcontractors are trading capacity up, leading to a bidding war for the marginal capacity. Labor remains tight and getting tighter.” (Transportation Equipment)
  • “Shortages of trucks and drivers has impacted delivery times.” (Food, Beverage & Tobacco Products)
  • “The recent steel tariffs have made it difficult to source material, and we have had to eliminate two products due to availability and cost of raw material.” (Fabricated Metal Products)
  • “Demand is up for products. Commodity pricing for steel and other materials increased due to the proposed tariffs. We are seeing commodity futures coming down. A lot of suppliers are asking for increases, and the team is battling those requests.” (Machinery)
  • "[The] 232 and 301 tariffs are very concerning. Business planning is at a standstill until they are resolved. Significant amount of manpower [on planning and the like] being expended on these issues.” (Miscellaneous Manufacturing)
  • “Production orders at this time are still strong and being driven partially by construction factors and customers purchasing ahead to avoid potential price increases.” (Plastics & Rubber Products)
  • “The general outlook for 2018 remains positive and upbeat as we see continued signs of a growing economy and investment in housing and infrastructure.” (Nonmetallic Mineral Products)
  • “Business conditions have been good; order book is full and running around 98 percent capacity.” (Primary Metals)
  • “Backorders remain strong. New order rate exceeds shipment rate.” (Computer & Electronic Products)

MANUFACTURING AT A GLANCE
April 2018

Index

Series Index Apr

Series Index Mar

Percentage Point Change

Direction

Rate of Change

Trend* (Months)

PMI®

57.3

59.3

-2.0

Growing

Slower

20

New Orders

61.2

61.9

-0.7

Growing

Slower

28

Production

57.2

61.0

-3.8

Growing

Slower

20

Employment

54.2

57.3

-3.1

Growing

Slower

19

Supplier Deliveries

61.1

60.6

+0.5

Slowing

Faster

19

Inventories

52.9

55.5

-2.6

Growing

Slower

4

Customers’ Inventories

44.3

42.0

+2.3

Too Low

Slower

19

Prices

79.3

78.1

+1.2

Increasing

Faster

26

Backlog of Orders

62.0

59.8

+2.2

Growing

Faster

15

New Export Orders

57.7

58.7

-1.0

Growing

Slower

26

Imports

57.8

59.7

-1.9

Growing

Slower

15

OVERALL ECONOMY

Growing

Slower

108

Manufacturing Sector

Growing

Slower

20

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

March 2018 Manufacturing ISM® Report On Business®

PMI® at 59.3%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Slower Rate; Backlog Same
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Faster Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in March, and the overall economy grew for the 107th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The March PMI® registered 59.3 percent, a decrease of 1.5 percentage points from the February reading of 60.8 percent. The New Orders Index registered 61.9 percent, a decrease of 2.3 percentage points from the February reading of 64.2 percent. The Production Index registered 61 percent, a 1 percentage point decrease compared to the February reading of 62 percent. The Employment Index registered 57.3 percent, a decrease of 2.4 percentage points from the February reading of 59.7 percent. The Supplier Deliveries Index registered 60.6 percent, a 0.5 percentage point decrease from the February reading of 61.1 percent. The Inventories Index registered 55.5 percent, a decrease of 1.2 percentage points from the February reading of 56.7 percent. The Prices Index registered 78.1 percent in March, a 3.9 percentage point increase from the February reading of 74.2 percent, indicating higher raw materials prices for the 25th consecutive month. Comments from the panel reflect continued expanding business strength. Demand remains robust, with the New Orders Index at 60 or above for the 11th straight month, and the Customers’ Inventories Index at its lowest level since July 2011. The Backlog of Orders Index continued a 14-month expansion with its highest reading since May 2004, when it registered 63 percent. Consumption, described as production and employment, continues to expand, with indications that labor and skill shortages are affecting production output. Inputs, expressed as supplier deliveries, inventories and imports, were negatively impacted by weather conditions; Asian holidays; lead time extensions; steel and aluminum disruptions across many industries; supplier labor issues; and transportation difficulties due to driver and equipment shortages. Export orders remained strong, supported by a weaker U.S. currency. The Prices Index is at its highest level since April 2011, when it registered 82.6 percent. In March, price increases occurred across 17 of 18 industry sectors. Demand remains robust, but the nation’s employment resources and supply chains are still struggling to keep up.”

Of the 18 manufacturing industries, 17 reported growth in March, in the following order: Fabricated Metal Products; Plastics & Rubber Products; Computer & Electronic Products; Paper Products; Printing & Related Support Activities; Nonmetallic Mineral Products; Transportation Equipment; Petroleum & Coal Products; Wood Products; Machinery; Chemical Products; Textile Mills; Electrical Equipment, Appliances & Components; Furniture & Related Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Primary Metals. The only industry reporting a decrease during the period is Apparel, Leather & Allied Products.

WHAT RESPONDENTS ARE SAYING ...

  • “Supply constraints, extended lead times, capacity constraints [and the like], particularly in the electronics components markets, continue to frustrate and drain needed resources, have delayed production schedules and, in some cases, caused missed or delayed sales opportunities.” (Computer & Electronic Products)
  • “International demand is strong for our products in all regions. We are seeing constraints in multiple chemical supply chains due to increased global demand. We are concerned about the impact of tariff and trade wars on demand, but at this time, [there are] no signals that global demand is slowing.” (Chemical Products)
  • “Production targets continue to be a struggle due to shortages of globally sourced components. Many subtier components are in short supply for multiple OEMs.” (Transportation Equipment)
  • “In the U.S., we continue to struggle with finding carriers and drivers for shipments.” (Food, Beverage & Tobacco Products)
  • “Much concern in the industry regarding the steel and aluminum tariffs recently [imposed]. This is causing panic buying, driving the near-term prices higher and [leading to] inventory shortages for non-contract customers.” (Machinery)
  • “New tariffs are causing concern across the supply chain. Full impact will take a few weeks to reveal itself.” (Miscellaneous Manufacturing)
  • “Significant price increases in the steel commodity due to 232 [the tariffs]. The price increases will begin to impact our company’s performance.” (Primary Metals)
  • “Overall, incoming orders are picking up, and supplier pricing is increasing in some commodities.” (Textile Mills)
  • “Hiring continues to slowly increase from February into March and capital spending was allowed a small increase. Oil market conditions have improved and continue to stabilize.” (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
March 2018

Index

Series Index Mar

Series Index Feb

Percentage Point Change

Direction

Rate of Change

Trend* (Months)

PMI®

59.3

60.8

-1.5

Growing

Slower

19

New Orders

61.9

64.2

-2.3

Growing

Slower

27

Production

61.0

62.0

-1.0

Growing

Slower

19

Employment

57.3

59.7

-2.4

Growing

Slower

18

Supplier Deliveries

60.6

61.1

-0.5

Slowing

Slower

18

Inventories

55.5

56.7

-1.2

Growing

Slower

3

Customers’ Inventories

42.0

43.7

-1.7

Too Low

Faster

18

Prices

78.1

74.2

+3.9

Increasing

Faster

25

Backlog of Orders

59.8

59.8

0.0

Growing

Same

14

New Export Orders

58.7

62.8

-4.1

Growing

Slower

25

Imports

59.7

60.5

-0.8

Growing

Slower

14

OVERALL ECONOMY

Growing

Slower

107

Manufacturing Sector

Growing

Slower

19

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

February 2018 Manufacturing ISM® Report On Business®

PMI® at 60.8%

New Orders, Production, and Employment Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing; Customers’ Inventories Too Low
Prices Increasing at Faster Rate; Exports and Imports Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 106th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The February PMI® registered 60.8 percent, an increase of 1.7 percentage points from the January reading of 59.1 percent. The New Orders Index registered 64.2 percent, a decrease of 1.2 percentage points from the January reading of 65.4 percent. The Production Index registered 62 percent, a 2.5 percentage point decrease compared to the January reading of 64.5 percent. The Employment Index registered 59.7 percent, an increase of 5.5 percentage points from the January reading of 54.2 percent. The Supplier Deliveries Index registered 61.1 percent, a 2 percentage point increase from the January reading of 59.1 percent. The Inventories Index registered 56.7 percent, an increase of 4.4 percentage points from the January reading of 52.3 percent. The Prices Index registered 74.2 percent in February, a 1.5 percentage point increase from the January reading of 72.7 percent, indicating higher raw materials prices for the 24th consecutive month. Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a faster rate to support production; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in February. Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across most industry sectors. The Customers’ Inventories Index indicates levels remain too low. Capital expenditure lead times improved by five days while production material supplier lead times extended four days during the month of February.”

Of the 18 manufacturing industries, 15 reported growth in February, in the following order: Printing & Related Support Activities; Primary Metals; Machinery; Computer & Electronic Products; Petroleum & Coal Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Fabricated Metal Products; Chemical Products; Transportation Equipment; Textile Mills; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances & Components; and Food, Beverage & Tobacco Products. Two industries reported contraction during the period: Apparel, Leather & Allied Products; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

  • “Availability of electronic components, long lead times, allocations and constraints continue to wreak havoc in the purchasing cycle, with no end in sight at this time.” (Computer & Electronic Products)
  • “Our business saw [an] increase in fourth quarter, and it continued in January 2018. CapEx purchase deliveries are moving out globally.” (Chemical Products)
  • “Labor market continues to be tight for supply chain talent in the Southern California area. Overall economy is strong.” (Transportation Equipment)
  • “Employment is one of our biggest challenges. No labor available.” (Food, Beverage & Tobacco Products)
  • “Steel market is doing rather well. Everybody is out of what I need.” (Fabricated Metal Products)
  • “It seems the tax break for business is making a difference. Customers are spending more for capital equipment.” (Machinery)
  • “Hiring has picked up for direct-hire employees. Due to end-of-2017 performance and improvement in commodity price, there has been an increase in capital budget.” (Petroleum & Coal Products)
  • “Business is very strong, and our lines are running at full capacity.” (Plastics & Rubber Products)
  • “We expect to have a strong year in 2018. In expectation, we have added to our sales staff and plan on adding to our production staff.” (Miscellaneous Manufacturing)
  • “The weakening U.S. dollar in relationship to the yuan is starting to impact importing cost. We are starting to see more supplier price increases.” (Electrical Equipment, Appliances & Components)

MANUFACTURING AT A GLANCE
February 2018

Index

Series Index Feb

Series Index Jan

Percentage Point Change

Direction

Rate of Change

Trend* (Months)

PMI®

60.8

59.1

+1.7

Growing

Faster

18

New Orders

64.2

65.4

-1.2

Growing

Slower

26

Production

62.0

64.5

-2.5

Growing

Slower

18

Employment

59.7

54.2

+5.5

Growing

Faster

17

Supplier Deliveries

61.1

59.1

+2.0

Slowing

Faster

17

Inventories

56.7

52.3

+4.4

Growing

Faster

2

Customers’ Inventories

43.7

45.6

-1.9

Too Low

Faster

17

Prices

74.2

72.7

+1.5

Increasing

Faster

24

Backlog of Orders

59.8

56.2

+3.6

Growing

Faster

13

New Export Orders

62.8

59.8

+3.0

Growing

Faster

24

Imports

60.5

58.4

+2.1

Growing

Faster

13

OVERALL ECONOMY

Growing

Faster

106

Manufacturing Sector

Growing

Faster

18

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.
*Number of months moving in current direction.


 

January 2018 Manufacturing ISM® Report On Business

PMI® at 59.1%

New Orders, Production, and Employment Continue Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Growing, Customers’ Inventories Too Low
Prices Increasing at Faster Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 105th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The January PMI® registered 59.1 percent, a decrease of 0.2 percentage point from the seasonally adjusted December reading of 59.3 percent. The New Orders Index registered 65.4 percent, a decrease of 2 percentage points from the seasonally adjusted December reading of 67.4 percent. The Production Index registered 64.5 percent, a 0.7 percentage point decrease compared to the seasonally adjusted December reading of 65.2 percent. The Employment Index registered 54.2 percent, a decrease of 3.9 percentage points from the seasonally adjusted December reading of 58.1 percent. The Supplier Deliveries Index registered 59.1 percent, a 1.9 percentage point increase from the seasonally adjusted December reading of 57.2 percent. The Inventories Index registered 52.3 percent, an increase of 3.8 percentage points from the December reading of 48.5 percent. The Prices Index registered 72.7 percent in January, a 4.4 percentage point increase from the December reading of 68.3 percent, indicating higher raw materials prices for the 23rd consecutive month. Comments from the panel reflect expanding business conditions, with new orders and production maintaining high levels of expansion; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow faster in January. Supplier deliveries continued to slow (improving) at a faster rate. Price increases occurred across all industry sectors. The Customers’ Inventories Index indicates levels are still too low. Capital expenditure lead times increased 8 percent during the month of January."

Of the 18 manufacturing industries, 14 reported growth in January in the following order: Textile Mills; Fabricated Metal Products; Plastics & Rubber Products; Primary Metals; Machinery; Transportation Equipment; Apparel, Leather & Allied Products; Chemical Products; Computer & Electronic Products; Paper Products; Petroleum & Coal Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; and Food, Beverage & Tobacco Products. Four industries reported contraction during the period: Printing & Related Support Activities; Wood Products; Furniture & Related Products; and Nonmetallic Mineral Products.

WHAT RESPONDENTS ARE SAYING ...

  • "Sales nationally and internationally are strong in Q1. We are increasing our CapEx spend by 30 percent to 40 percent over [the] previous year." (Chemical Products)
  • "We have heard reports of additional business due to the recent reduction of tax rates." (Machinery)
  • "Business outlook is positive on all fronts right now with our customers. Budgets are being approved for new projects, and component prices from suppliers have temporarily stabilized." (Computer & Electronic Products)
  • "Our usual winter slowdown has not occurred, and we are very busy with new orders." (Furniture & Related Products)
  • "Slow start to 2018; pricing on metals is heading up and quotes/orders are picking up as well." (Fabricated Metal Products)
  • "Overall, business remains steady. With several key programs to begin ramping up in the industry, outlook looks good for calendar year 2018." (Transportation Equipment)
  • "Employment is very tight in our area." (Food, Beverage & Tobacco Products)
  • "Business continues to strengthen." (Paper Products)
  • "Business is starting the new year strong. Consumer confidence seems to be driving a lot of our customers’ order requirements higher." (Plastics & Rubber Products)

MANUFACTURING AT A GLANCE
January 2018



Index

Series
Index
Jan

Series
Index
Dec

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

59.1

59.3

-0.2

Growing

Slower

17

New Orders

65.4

67.4

-2.0

Growing

Slower

25

Production

64.5

65.2

-0.7

Growing

Slower

17

Employment

54.2

58.1

-3.9

Growing

Slower

16

Supplier Deliveries

59.1

57.2

+1.9

Slowing

Faster

16

Inventories

52.3

48.5

+3.8

Growing

From Contracting

1

Customers' Inventories

45.6

42.9

+2.7

Too Low

Slower

16

Prices

72.7

68.3

+4.4

Increasing

Faster

23

Backlog of Orders

56.2

54.9

+1.3

Growing

Faster

12

New Export Orders

59.8

57.6

+2.2

Growing

Faster

23

Imports

58.4

56.5

+1.9

Growing

Faster

12

OVERALL ECONOMY

Growing

Slower

105

Manufacturing Sector

Growing

Slower

17

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

Indexes reflect newly released seasonal adjustment factors.


 

December 2017 Manufacturing ISM® Report On Business®

PMI® at 59.7%

New Orders, Production, and Employment Continue Growing
Supplier Deliveries Slowing at Faster Rate; Backlog Growing
Raw Materials Inventories Contracting, Customers’ Inventories Too Low
Prices Increasing at Faster Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 103rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report on Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The December PMI® registered 59.7 percent, an increase of 1.5 percentage points from the November reading of 58.2 percent. The New Orders Index registered 69.4 percent, an increase of 5.4 percentage points from the November reading of 64 percent. The Production Index registered 65.8 percent, a 1.9 percentage point increase compared to the November reading of 63.9 percent. The Employment Index registered 57 percent, a decrease of 2.7 percentage points from the November reading of 59.7 percent. The Supplier Deliveries Index registered 57.9 percent, a 1.4 percentage point increase from the November reading of 56.5 percent. The Inventories Index registered 48.5 percent, an increase of 1.5 percentage points from the November reading of 47 percent. The Prices Index registered 69 percent in December, a 3.5 percentage point increase from the November reading of 65.5 percent, indicating higher raw materials prices for the 22nd consecutive month. Comments from the panel reflect expanding business conditions, with new orders and production leading gains; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow in December. Supplier deliveries continued to slow (improving) at a faster rate, and inventories continued to contract at a slower rate during the period. Price increases continued at a faster rate. The Customers’ Inventories Index declined and remains at low levels.”

Of the 18 manufacturing industries, 16 reported growth in December in the following order: Machinery; Computer & Electronic Products; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Furniture & Related Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; and Electrical Equipment, Appliances & Components. Two industries reported contraction during the period: Wood Products; and Textile Mills.

WHAT RESPONDENTS ARE SAYING ...

  • “Our business is moving higher into the new year. Increased sales are resulting in increased purchases of CapEx and raw materials.” (Chemical Products)
  • “Strong international sales — Europe and Australia — versus last two years. U.S. sales continue to grow. Seeing commodity pricing pressures.” (Machinery)
  • “We are seeing a ramp-up with companies releasing early 2018 spend now.” (Computer & Electronic Products)
  • “Business conditions are good; we are tracking well to our projections for the year.” (Miscellaneous Manufacturing)
  • “First quarter 2018 probably will be better than the fourth quarter 2017.” (Fabricated Metal Products)
  • “Domestic and international sales on the rise.” (Transportation Equipment)
  • “Economy [is] strong and business is strong, yet signals of headwinds in 2018 are persistent.” (Food, Beverage & Tobacco Products)
  • “All suppliers are reporting strong business activity and difficulties obtaining qualified employees.” (Paper Products)
  • “Demand at this time is strong in the construction part of our business. I think it is due to the impact of the hurricanes and the rebuild and new construction that is required.” (Plastics & Rubber Products)

MANUFACTURING AT A GLANCE
December 2017

Index

Series Index Dec

Series Index Nov

Percentage Point Change

Direction

Rate of Change

Trend* (Months)

PMI®

59.7

58.2

+1.5

Growing

Faster

16

New Orders

69.4

64.0

+5.4

Growing

Faster

16

Production

65.8

63.9

+1.9

Growing

Faster

16

Employment

57.0

59.7

-2.7

Growing

Slower

15

Supplier Deliveries

57.9

56.5

+1.4

Slowing

Faster

20

Inventories

48.5

47.0

+1.5

Contracting

Slower

3

Customers’ Inventories

42.0

45.5

-3.5

Too Low

Faster

6

Prices

69.0

65.5

+3.5

Increasing

Faster

22

Backlog of Orders

56.0

55.0

+1.0

Growing

Faster

11

New Export Orders

58.5

56.0

+2.5

Growing

Faster

22

Imports

57.5

54.5

+3.0

Growing

Faster

11

OVERALL ECONOMY

Growing

Faster

103

Manufacturing Sector

Growing

Faster

16

Manufacturing ISM® Report on Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

November 2017 Manufacturing ISM® Report On Business®

PMI® at 58.2%

New Orders, Production, and Employment Continue Growing
Supplier Deliveries Slowing at Slower Rate, Backlog Growing
Raw Materials Inventories Contracting, Customers’ Inventories Improving
Prices Increasing at Slower Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 102nd consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The November PMI® registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent. The New Orders Index registered 64 percent, an increase of 0.6 percentage point from the October reading of 63.4 percent. The Production Index registered 63.9 percent, a 2.9 percentage point increase compared to the October reading of 61 percent. The Employment Index registered 59.7 percent, a decrease of 0.1 percentage point from the October reading of 59.8 percent. The Supplier Deliveries Index registered 56.5 percent, a 4.9 percentage point decrease from the October reading of 61.4 percent. The Inventories Index registered 47 percent, a decrease of 1 percentage point from the October reading of 48 percent. The Prices Index registered 65.5 percent in November, a 3 percentage point decrease from the October level of 68.5, indicating higher raw materials prices for the 21st consecutive month. Comments from the panel reflect expanding business conditions, with New Orders and Production leading gains, employment expanding at a slower rate, order backlogs stable and expanding, and export orders all continuing to grow in November. Supplier deliveries continued to slow (improving), but at slower rates, and inventories continued to contract during the period. Price increases continued, but at a slower rate. The Customers’ Inventories Index improved but remains at low levels."

Of the 18 manufacturing industries, 14 reported growth in November, in the following order: Paper Products; Machinery; Transportation Equipment; Computer & Electronic Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; Furniture & Related Products; Fabricated Metal Products; Miscellaneous Manufacturing; and Primary Metals. Two industries reported contraction during the period: Wood Products; and Petroleum & Coal Products.

WHAT RESPONDENTS ARE SAYING ...

  • "Continuing to see more orders for the next six to 12 months." (Chemical Products)
  • "Strong sales through third and now fourth quarters. Backlog increasing, and capacity at suppliers tightening." (Machinery)
  • "Business has leveled out but remains strong heading into the end of the year." (Computer & Electronic Products)
  • "We are just coming off a record sales year. We expect to continue in 2018 robust activity." (Miscellaneous Manufacturing)
  • "We are seeing steady, consistent demand for end of year. We usually see a slowdown, which we haven’t seen yet." (Fabricated Metal Products)
  • "Overall industry demand remains strong. Continue to have a healthy backlog of orders. Local economy is also strong, with a fairly tight labor market." (Transportation Equipment)
  • "Business is strong. Employment is tight. Supplier deliveries have lengthened. A few suppliers are still blaming Hurricane Harvey for the lead times." (Food, Beverage & Tobacco Products)
  • "Strong season demand for products and continued requirements for uptime." (Nonmetallic Mineral Products)
  • "Currently, we have not experienced the typical seasonal slowdown toward the end of Q4. Could be that there is a lot of optimism in the American economy." (Plastics & Rubber Products)

MANUFACTURING AT A GLANCE
November 2017



Index

Series
Index
Nov

Series
Index
Oct

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

58.2

58.7

-0.5

Growing

Slower

15

New Orders

64.0

63.4

+0.6

Growing

Faster

15

Production

63.9

61.0

+2.9

Growing

Faster

15

Employment

59.7

59.8

-0.1

Growing

Slower

14

Supplier Deliveries

56.5

61.4

-4.9

Slowing

Slower

19

Inventories

47.0

48.0

-1.0

Contracting

Faster

2

Customers' Inventories

45.5

43.5

+2.0

Too Low

Slower

5

Prices

65.5

68.5

-3.0

Increasing

Slower

21

Backlog of Orders

55.0

55.0

0.0

Growing

Same

10

New Export Orders

56.0

56.5

-0.5

Growing

Slower

21

Imports

54.5

54.0

+0.5

Growing

Faster

10

OVERALL ECONOMY

Growing

Slower

102

Manufacturing Sector

Growing

Slower

15

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

October 2017 Manufacturing ISM® Report On Business®

PMI® at 58.7%

New Orders, Production, Backlog of Orders and Employment Continue Growing
Supplier Deliveries Slowing at Slower Rate
Raw Materials’ Inventories Contracting, Customers’ Inventories Too Low
Prices Increasing at Slower Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 101st consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The October PMI® registered 58.7 percent, a decrease of 2.1 percentage points from the September reading of 60.8 percent. The New Orders Index registered 63.4 percent, a decrease of 1.2 percentage points from the September reading of 64.6 percent. The Production Index registered 61 percent, a 1.2 percentage point decrease compared to the September reading of 62.2 percent. The Employment Index registered 59.8 percent, a decrease of 0.5 percentage point from the September reading of 60.3 percent. The Supplier Deliveries Index registered 61.4 percent, a 3 percentage point decrease from the September reading of 64.4 percent. The Inventories Index registered 48 percent, a decrease of 4.5 percentage points from the September reading of 52.5 percent. The Prices Index registered 68.5 percent in October, a 3 percentage point decrease from the September level of 71.5, indicating higher raw materials prices for the 20th consecutive month. Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all continuing to grow in October, supplier deliveries continuing to slow (improving) and inventories contracting during the period. Prices continue to remain under pressure. The Customers’ Inventories Index remains at low levels."

Of the 18 manufacturing industries, 16 reported growth in October, in the following order: Paper Products; Nonmetallic Mineral Products; Machinery; Transportation Equipment; Wood Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Plastics & Rubber Products; Textile Mills; Chemical Products; Computer & Electronic Products; Fabricated Metal Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; and Primary Metals. Two industries reported the same level of activity as September.

WHAT RESPONDENTS ARE SAYING ...

  • "Raw material costs on the rise, but purchasing operation has navigated shortages caused by hurricanes." (Chemical Products)
  • "Incoming orders are strong, mainly due to recovery efforts in the wake of Hurricanes Harvey and Irma. Backlogs are up due to operating inefficiencies." (Machinery)
  • "Hurricanes have caused shortages in the resin market, resulting in price increases, inventory constraints and increased lead times." (Computer & Electronic Products)
  • "Ongoing market growth. Minimal impact expected from hurricanes so far in this season." (Miscellaneous Manufacturing)
  • "Business seems to be a bit depressed due to the storms last month, but is picking back up." (Fabricated Metal Products)
  • "Business continues to be better than expected." (Transportation Equipment)
  • "Business is good. Supplier deliveries have extended. Things are really picking up." (Food, Beverage & Tobacco Products)
  • "Our plants are sold out for 2017 — we can’t take any new orders." (Nonmetallic Mineral Products)
  • "In plastics processing, Hurricane Harvey is the reason for every price increase being announced — and virtually all suppliers are announcing price increases." (Plastics & Rubber Products)

MANUFACTURING AT A GLANCE
October 2017



Index

Series
Index
Oct

Series
Index
Sep

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

58.7

60.8

-2.1

Growing

Slower

14

New Orders

63.4

64.6

-1.2

Growing

Slower

14

Production

61.0

62.2

-1.2

Growing

Slower

14

Employment

59.8

60.3

-0.5

Growing

Slower

13

Supplier Deliveries

61.4

64.4

-3.0

Slowing

Slower

18

Inventories

48.0

52.5

-4.5

Contracting

From Growing

1

Customers' Inventories

43.5

42.0

+1.5

Too Low

Slower

4

Prices

68.5

71.5

-3.0

Increasing

Slower

20

Backlog of Orders

55.0

58.0

-3.0

Growing

Slower

9

New Export Orders

56.5

57.0

-0.5

Growing

Slower

20

Imports

54.0

54.0

0.0

Growing

Same

9

OVERALL ECONOMY

Growing

Slower

101

Manufacturing Sector

Growing

Slower

14

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

September 2017 Manufacturing ISM® Report On Business®

PMI® at 60.8%

New Orders, Production, Backlog of Orders and Employment Continue Growing
Supplier Deliveries Slowing
Raw Materials Inventories Growing, Customers' Inventories Too Low
Prices Increasing at Faster Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in September, and the overall economy grew for the 100th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The September PMI® registered 60.8 percent, an increase of 2 percentage points from the August reading of 58.8 percent. The New Orders Index registered 64.6 percent, an increase of 4.3 percentage points from the August reading of 60.3 percent. The Production Index registered 62.2 percent, a 1.2 percentage point increase compared to the August reading of 61 percent. The Employment Index registered 60.3 percent, an increase of 0.4 percentage point from the August reading of 59.9 percent. The Supplier Deliveries Index registered 64.4 percent, a 7.3 percentage point increase from the August reading of 57.1 percent. The Inventories Index registered 52.5 percent, a decrease of 3 percentage points from the August reading of 55.5 percent. The Prices Index registered 71.5 percent in September, a 9.5 percentage point increase from the August level of 62, indicating higher raw materials prices for the 19th consecutive month. Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all growing in September; as well as, supplier deliveries slowing (improving) and inventories growing at a slower rate during the period. The Customers’ Inventories Index remains at low levels."

Of the 18 manufacturing industries, 17 reported growth in September, in the following order: Textile Mills; Machinery; Nonmetallic Mineral Products; Transportation Equipment; Plastics & Rubber Products; Paper Products; Wood Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Products; Miscellaneous Manufacturing; Petroleum & Coal Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; and Primary Metals. One industry, Furniture & Related Products, reported contraction in September compared to August.

WHAT RESPONDENTS ARE SAYING ...

  • "Hurricanes causing supply chain and pricing issues." (Chemical Products)
  • "Business levels continue [to be] strong; usually by now, a seasonal downturn begins." (Machinery)
  • "Energy sector (oil and gas) continues to be strong. Price of oil appears to be beginning to stabilize." (Computer & Electronic Products)
  • "We’ve had a very good year and we are forecasting continued strong demand for our product in 2018." (Miscellaneous Manufacturing)
  • "Business is strong. However, we are concerned about price increases due to the hurricanes." (Plastics & Rubber Products)
  • "We are closely watching the Houston events as many of our production chemicals are produced in the Gulf region. Some tightening of supply and/or price increases expected." (Paper Products)
  • "Labor shortages continue to haunt operational capacity both at [the] local plant [level] and up and down the supply chain."(Transportation Equipment)
  • "Hurricanes Harvey and Irma will have significant effects on input costs. Disruption in supply chain. Concerns of transportation." (Food, Beverage & Tobacco Products)
  • "Hurricane Harvey, and now Irma, have impacted the business (building materials). Increasing sales but also causing significant price increases on input raw materials." (Nonmetallic Mineral Products)
  • "Lumber prices starting to drop, and log prices starting to increase. Not the best combination." (Wood Products)

MANUFACTURING AT A GLANCE
September 2017



Index

Series
Index
Sep

Series
Index
Aug

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

60.8

58.8

+2.0

Growing

Faster

13

New Orders

64.6

60.3

+4.3

Growing

Faster

13

Production

62.2

61.0

+1.2

Growing

Faster

13

Employment

60.3

59.9

+0.4

Growing

Faster

12

Supplier Deliveries

64.4

57.1

+7.3

Slowing

Faster

17

Inventories

52.5

55.5

-3.0

Growing

Slower

2

Customers' Inventories

42.0

41.0

+1.0

Too Low

Slower

3

Prices

71.5

62.0

+9.5

Increasing

Faster

19

Backlog of Orders

58.0

57.5

+0.5

Growing

Faster

8

New Export Orders

57.0

55.5

+1.5

Growing

Faster

19

Imports

54.0

54.5

-0.5

Growing

Slower

8

OVERALL ECONOMY

Growing

Faster

100

Manufacturing Sector

Growing

Faster

13

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

August 2017 Manufacturing ISM® Report On Business®

PMI® at 58.8%

New Orders, Production, Backlog of Orders and Employment Continue Growing
Supplier Deliveries Slowing
Raw Materials Inventories Growing, Customer Inventories Too Low
Prices Increasing at Same Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in August, and the overall economy grew for the 99th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The August PMI® registered 58.8 percent, an increase of 2.5 percentage points from the July reading of 56.3 percent. The New Orders Index registered 60.3 percent, a decrease of 0.1 percentage point from the July reading of 60.4 percent. The Production Index registered 61 percent, a 0.4 percentage point increase compared to the July reading of 60.6 percent. The Employment Index registered 59.9 percent, an increase of 4.7 percentage points from the July reading of 55.2 percent. The Supplier Deliveries Index registered 57.1 percent, a 1.7 percentage point increase from the July reading of 55.4 percent. The Inventories Index registered 55.5 percent, an increase of 5.5 percentage points from the July reading of 50 percent. The Prices Index registered 62 percent in August, the same reading as July, indicating higher raw materials’ prices for the 18th consecutive month. Comments from the panel reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in August, as well as supplier deliveries slowing (improving) and inventories increasing during the period. The Customers’ Inventories Index experienced a sharp decline in August compared to July."

Of the 18 manufacturing industries, 14 reported growth in August, in the following order: Textile Mills; Petroleum & Coal Products; Machinery; Transportation Equipment; Fabricated Metal Products; Computer & Electronic Products; Paper Products; Electrical Equipment, Appliances & Components; Miscellaneous Manufacturing; Chemical Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Printing & Related Support Activities; and Food, Beverage & Tobacco Products. Three industries reported contraction in August compared to July: Apparel, Leather & Allied Products; Primary Metals; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

  • "Steady demand across businesses." (Chemical Products)
  • "Demand for light construction equipment continues strong; usually at this time of year, demand slackens." (Machinery)
  • "Overall very steady; starting to pick up as expected." (Computer & Electronic Products)
  • "Overall optimism about the market, both for 2017 and 2018." (Miscellaneous Manufacturing)
  • "Business has strengthened over the summer, beyond [the] same period last year." (Paper Products)
  • "Busy production month for August." (Textile Mills)
  • "Sales remain strong month-to-month. (Transportation Equipment)
  • "Slightly higher order intake." (Electrical Equipment, Appliances & Components)
  • "Order board is very strong right now." (Food, Beverage & Tobacco Products)
  • "Business is steady and strong." (Furniture & Related Products)

MANUFACTURING AT A GLANCE
August 2017



Index

Series
Index
Aug

Series
Index
Jul

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

58.8

56.3

+2.5

Growing

Faster

12

New Orders

60.3

60.4

-0.1

Growing

Slower

12

Production

61.0

60.6

+0.4

Growing

Faster

12

Employment

59.9

55.2

+4.7

Growing

Faster

11

Supplier Deliveries

57.1

55.4

+1.7

Slowing

Faster

16

Inventories

55.5

50.0

+5.5

Growing

From Unchanged

1

Customers' Inventories

41.0

49.0

-8.0

Too Low

Slower

2

Prices

62.0

62.0

0

Increasing

Same

18

Backlog of Orders

57.5

55.0

+2.5

Growing

Faster

7

New Export Orders

55.5

57.5

-2.0

Growing

Slower

18

Imports

54.5

56.0

-1.5

Growing

Slower

7

OVERALL ECONOMY

Growing

Faster

99

Manufacturing Sector

Growing

Faster

12

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

July 2017 Manufacturing ISM® Report On Business®

PMI® at 56.3%

New Orders, Production, Backlog of Orders and Employment Continue Growing
Supplier Deliveries Slowing
Inventories Unchanged
Prices Increasing at Faster Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in July, and the overall economy grew for the 98th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The July PMI® registered 56.3 percent, a decrease of 1.5 percentage points from the June reading of 57.8 percent. The New Orders Index registered 60.4 percent, a decrease of 3.1 percentage points from the June reading of 63.5 percent. The Production Index registered 60.6 percent, a 1.8 percentage point decrease compared to the June reading of 62.4 percent. The Employment Index registered 55.2 percent, a decrease of 2 percentage points from the June reading of 57.2 percent. The Supplier Deliveries Index registered 55.4 percent, a 1.6 percentage point decrease from the June reading of 57 percent. The Inventories Index registered 50 percent, an increase of 1 percentage point from the June reading of 49 percent. The Prices Index registered 62 percent in July, an increase of 7 percentage points from the June reading of 55 percent, indicating higher raw materials prices for the 17th consecutive month, with a faster rate of increase in July compared with June. Comments from the panel generally reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in July compared to June, as well as supplier deliveries slowing (improving) and inventories unchanged during the period."

Of the 18 manufacturing industries, 15 reported growth in July in the following order: Plastics & Rubber Products; Electrical Equipment, Appliances & Components; Wood Products; Fabricated Metal Products; Machinery; Chemical Products; Paper Products; Food, Beverage & Tobacco Products; Printing & Related Support Activities; Computer & Electronic Products; Nonmetallic Mineral Products; Furniture & Related Products; Miscellaneous Manufacturing; Primary Metals; and Transportation Equipment. Three industries reported contraction in July compared to June: Apparel, Leather & Allied Products; Textile Mills; and Petroleum & Coal Product.

WHAT RESPONDENTS ARE SAYING ...

  • "Orders are strong, and quote activity is just as strong. Gearing up for [a] strong third quarter." (Chemical Products)
  • "In regard to sales, we have had our best year ever. Demand still exceeds supply in our category. Competitors are investing in capital expansion." (Food, Beverage & Tobacco Products)
  • "We are having huge sales numbers, and backlog is growing." (Computer & Electronic Products)
  • "Strong demand for our products has our manufacturing plants focusing on uptime and production." (Nonmetallic Mineral Products)
  • "Export orders are continuing to strengthen. The understatement is how stable domestic business is as well." (Wood Products)
  • "Business is very steady, but everyone is waiting till the last minute to place their orders." (Machinery)
  • "Six profitable months in a row. First time since 2007." (Fabricated Metal Products)
  • "Starting to see better order entry and planning on turnaround for 2018." (Electrical Equipment, Appliances & Components)
  • "Business has picked up the last few months, but next month is a bit slower — could be cyclical." (Plastics & Rubber Products)
  • "Labor shortages are pretty universal, leading to longer lead times through the supply chain. Pricing pressure as community clamors for premium capacity." (Transportation Equipment)

MANUFACTURING AT A GLANCE
July 2017



Index

Series
Index
Jul

Series
Index
Jun

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

56.3

57.8

-1.5

Growing

Slower

11

New Orders

60.4

63.5

-3.1

Growing

Slower

11

Production

60.6

62.4

-1.8

Growing

Slower

11

Employment

55.2

57.2

-2.0

Growing

Slower

10

Supplier Deliveries

55.4

57.0

-1.6

Slowing

Slower

15

Inventories

50.0

49.0

+1.0

Unchanged

From Contracting

1

Customers' Inventories

49.0

50.5

-1.5

Too Low

From Too High

1

Prices

62.0

55.0

+7.0

Increasing

Faster

17

Backlog of Orders

55.0

57.0

-2.0

Growing

Slower

6

New Export Orders

57.5

59.5

-2.0

Growing

Slower

17

Imports

56.0

54.0

+2.0

Growing

Faster

6

OVERALL ECONOMY

Growing

Slower

98

Manufacturing Sector

Growing

Slower

11

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

June 2017 Manufacturing ISM® Report On Business®

PMI® at 57.8%

New Orders, Production, Backlog of Orders and Employment Growing
Supplier Deliveries Slowing
Inventories Contracting
Prices Increasing at Slower Rate

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in June, and the overall economy grew for the 97th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The June PMI® registered 57.8 percent, an increase of 2.9 percentage points from the May reading of 54.9 percent. The New Orders Index registered 63.5 percent, an increase of 4 percentage points from the May reading of 59.5 percent. The Production Index registered 62.4 percent, a 5.3 percentage point increase compared to the May reading of 57.1 percent. The Employment Index registered 57.2 percent, an increase of 3.7 percentage points from the May reading of 53.5 percent. The Supplier Deliveries index registered 57 percent, a 3.9 percentage point increase from the May reading of 53.1 percent. The Inventories Index registered 49 percent, a decrease of 2.5 percentage points from the May reading of 51.5 percent. The Prices Index registered 55 percent in June, a decrease of 5.5 percentage points from the May reading of 60.5 percent, indicating higher raw materials’ prices for the 16th consecutive month, but at a slower rate of increase in June compared with May. Comments from the panel generally reflect expanding business conditions; with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace."

Of the 18 manufacturing industries, 15 reported growth in June in the following order: Furniture & Related Products; Nonmetallic Mineral Products; Paper Products; Machinery; Electrical Equipment, Appliances & Components; Chemical Products; Transportation Equipment; Computer & Electronic Products; Food, Beverage & Tobacco Products; Plastics & Rubber Products; Printing & Related Support Activities; Fabricated Metal Products; Wood Products; Miscellaneous Manufacturing; and Petroleum & Coal Products. Three industries reported contraction in June compared to May: Apparel, Leather & Allied Products; Textile Mills; and Primary Metals.

WHAT RESPONDENTS ARE SAYING ...

  • "Overall, business is strong. We are seeing price increases for packaging and handling materials as well as some MRO supplies" (Plastics & Rubber Products)
  • "Overall, demand is up 5-7 percent and expected to continue through the end of the year, at least. " (Transportation Equipment)
  • "Demand is picking up; meeting budget expectations." (Electrical Equipment, Appliances & Components)
  • "Business is still very robust. Have continued to hire to match increased demand." (Computer & Electronic Products)
  • "Business [is] steady; not great, but good and fairly solid." (Furniture & Related Products)
  • "Business globally continues to show improvement." (Chemical Products)
  • "Environmental regulations have strong effects on our business. We continue to watch for any changes as a result of the new administration." (Paper Products)
  • "Dry weather helping demand." (Nonmetallic Mineral Products)
  • "International business outside North America on the upswing." (Machinery)
  • "Metal pricing continues to drag down our profit margins, but we are very busy quoting new business, so our customers have a good outlook on the rest of the year." (Fabricated Metal Products)
  • "Business is strong both domestically and internationally. Supplier deliveries are quick domestically, international supply chain is slowing. We are in a hiring mode." (Food, Beverage & Tobacco Products)

MANUFACTURING AT A GLANCE
June 2017



Index
Series
Index
June
Series
Index
May
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 57.8 54.9 +2.9 Growing Faster 10
New Orders 63.5 59.5 +4.0 Growing Faster 10
Production 62.4 57.1 +5.3 Growing Faster 10
Employment 57.2 53.5 +3.7 Growing Faster 9
Supplier Deliveries 57.0 53.1 +3.9 Slowing Faster 14
Inventories 49.0 51.5 -2.5 Contracting From Growing 1
Customers' Inventories 50.5 49.5 +1.0 Too High From Too Low 1
Prices 55.0 60.5 -5.5 Increasing Slower 16
Backlog of Orders 57.0 55.0 +2.0 Growing Faster 5
New Export Orders 59.5 57.5 +2.0 Growing Faster 16
Imports 54.0 53.5 +0.5 Growing Faster 5
OVERALL ECONOMY Growing Faster 97
Manufacturing Sector Growing Faster 10

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

May 2017 Manufacturing ISM® Report On Business®

PMI® at 54.9%

New Orders, Inventories and Employment Growing
Supplier Deliveries Slowing
Prices Increasing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May, and the overall economy grew for the 96th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The May PMI® registered 54.9 percent, an increase of 0.1 percentage point from the April reading of 54.8 percent. The New Orders Index registered 59.5 percent, an increase of 2 percentage points from the April reading of 57.5 percent. The Production Index registered 57.1 percent, a 1.5 percentage points decrease compared to the April reading of 58.6 percent. The Employment Index registered 53.5 percent, an increase of 1.5 percentage points from the April reading of 52 percent. The Inventories Index registered 51.5 percent, an increase of 0.5 percentage point from the April reading of 51 percent. The Prices Index registered 60.5 percent in May, a decrease of 8 percentage points from the April reading of 68.5 percent, indicating higher raw materials prices for the 15th consecutive month, but at a noticeably slower rate of increase in May compared with April. Comments from the panel generally reflect stable to growing business conditions, with new orders, employment and inventories of raw materials all growing in May compared to April. The slowing of pricing pressure, especially in basic commodities, should have a positive impact on margins and buying policies as this moderation moves up the value chain."

Of the 18 manufacturing industries, 15 reported growth in May in the following order: Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Machinery; Primary Metals; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Paper Products; Miscellaneous Manufacturing; Computer & Electronic Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; Petroleum & Coal Products; and Printing & Related Support Activities. Two industries reported contraction in May compared to April: Apparel, Leather & Allied Products; and Textile Mills.

WHAT RESPONDENTS ARE SAYING ...

  • "Sales have picked up compared to the last two months. Customer demand has increased." (Plastics & Rubber Products)
  • "Economy is still strong, but [the] political climate can change things very quickly." (Transportation Equipment)
  • "Global price increases for commodities." (Electrical Equipment, Appliances & Components)
  • "Business (sales/production) is steady. Pricing pressures on raw materials. Skilled labor in short supply." (Furniture & Related Products)
  • "Agricultural demand very strong." (Chemical Products)
  • "Our business is definitely paying attention to developments with the Canadian lumber tariff announcement. The final outcome could change our fiber pricing." (Paper Products)
  • "OEM longer lead parts possibly longer lead time due to more orders." (Nonmetallic Mineral Products)
  • "Business conditions are steady, and with competition increasing, it's making negotiations even more intense to reduce costs." (Machinery)
  • "Business is booming, and getting direct employees is increasingly difficult." (Fabricated Metal Products)
  • "Difficult to find qualified labor for factory positions." (Food, Beverage & Tobacco Products)

MANUFACTURING AT A GLANCE
May 2017



Index
Series
Index
May
Series
Index
Apr
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 54.9 54.8 +0.1 Growing Faster 9
New Orders 59.5 57.5 +2.0 Growing Faster 9
Production 57.1 58.6 -1.5 Growing Slower 9
Employment 53.5 52.0 +1.5 Growing Faster 8
Supplier Deliveries 53.1 55.1 -2.0 Slowing Slower 13
Inventories 51.5 51.0 +0.5 Growing Faster 2
Customers' Inventories 49.5 45.5 +4.0 Too Low Slower 8
Prices 60.5 68.5 -8.0 Increasing Slower 15
Backlog of Orders 55.0 57.0 -2.0 Growing Slower 4
New Export Orders 57.5 59.5 -2.0 Growing Slower 15
Imports 53.5 55.5 -2.0 Growing Slower 4
OVERALL ECONOMY Growing Faster 96
Manufacturing Sector Growing Faster 9

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

April 2017 Manufacturing ISM® Report On Business®

PMI® at 54.8%

New Orders, Production and Employment Growing
Supplier Deliveries Slowing
Inventories Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in April, and the overall economy grew for the 95th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The April PMI® registered 54.8 percent, a decrease of 2.4 percentage points from the March reading of 57.2 percent. The New Orders Index registered 57.5 percent, a decrease of 7 percentage points from the March reading of 64.5 percent. The Production Index registered 58.6 percent, 1 percentage point higher than the March reading of 57.6 percent. The Employment Index registered 52 percent, a decrease of 6.9 percentage points from the March reading of 58.9 percent. Inventories of raw materials registered 51 percent, an increase of 2 percentage points from the March reading of 49 percent. The Prices Index registered 68.5 percent in April, a decrease of 2 percentage points from the March reading of 70.5 percent, indicating higher raw materials prices for the 14th consecutive month, but at a slower rate of increase in April compared with March. Comments from the panel generally reflect stable to growing business conditions; with new orders, production, employment and inventories of raw materials all growing in April over March."

Of the 18 manufacturing industries, 16 reported growth in April in the following order: Electrical Equipment, Appliances & Components; Textile Mills; Nonmetallic Mineral Products; Furniture & Related Products; Plastics & Rubber Products; Fabricated Metal Products; Printing & Related Support Activities; Machinery; Paper Products; Chemical Products; Food, Beverage & Tobacco Products; Primary Metals; Miscellaneous Manufacturing; Computer & Electronic Products; Petroleum & Coal Products; and Transportation Equipment. The only industry that reported contraction in April compared to March is Apparel, Leather & Allied Products.

WHAT RESPONDENTS ARE SAYING ...

  • "For [the] first time in a long time, revenue was up in Q1 year-over-year. Our customers' businesses are starting to show sustained health." (Apparel, Leather & Allied Products)
  • "Seeing increased orders and new projects." (Chemical Products)
  • "Bookings are slow; however, we did receive a very large government order." (Computer & Electronic Products)
  • "Business is definitely improving. Profit margins are increasing." (Fabricated Metal Products)
  • "Ongoing market strength. While world/political headlines cause personal anxiety, business conditions remain solid." (Miscellaneous Manufacturing)
  • "The poultry market continues to be stronger than anticipated." (Food, Beverage & Tobacco Products)
  • "Continuing to source more raw materials locally and reduce exposure outside U.S." (Machinery)
  • "Military and government spending is remaining strong. Commercial business has been flat to slightly down." (Transportation Equipment)
  • "Our business and outlook are [strong]. We are seeing price increases from suppliers in many categories." (Plastics & Rubber Products)
  • "Business is solid. Pricing pressures on commodities." (Furniture & Related Products)

MANUFACTURING AT A GLANCE
April 2017



Index

Series
Index
Apr

Series
Index
Mar

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

54.8

57.2

-2.4

Growing

Slower

8

New Orders

57.5

64.5

-7.0

Growing

Slower

8

Production

58.6

57.6

+1.0

Growing

Faster

8

Employment

52.0

58.9

-6.9

Growing

Slower

7

Supplier Deliveries

55.1

55.9

-0.8

Slowing

Slower

12

Inventories

51.0

49.0

+2.0

Growing

From
Contracting

1

Customers' Inventories

45.5

47.0

-1.5

Too Low

Faster

7

Prices

68.5

70.5

-2.0

Increasing

Slower

14

Backlog of Orders

57.0

57.5

-0.5

Growing

Slower

3

New Export Orders

59.5

59.0

+0.5

Growing

Faster

14

Imports

55.5

53.5

+2.0

Growing

Faster

3

OVERALL ECONOMY

Growing

Slower

95

Manufacturing Sector

Growing

Slower

8

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

March 2017 Manufacturing ISM® Report On Business®

PMI® at 57.2%

New Orders, Production and Employment Growing
Supplier Deliveries Slowing
Inventories Contracting

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in March, and the overall economy grew for the 94th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: "The March PMI® registered 57.2 percent, a decrease of 0.5 percentage point from the February reading of 57.7 percent. The New Orders Index registered 64.5 percent, a decrease of 0.6 percentage point from the February reading of 65.1 percent. The Production Index registered 57.6 percent, 5.3 percentage points lower than the February reading of 62.9 percent. The Employment Index registered 58.9 percent, an increase of 4.7 percentage points from the February reading of 54.2 percent. Inventories of raw materials registered 49 percent, a decrease of 2.5 percentage points from the February reading of 51.5 percent. The Prices Index registered 70.5 percent in March, an increase of 2.5 percentage points from the February reading of 68 percent, indicating higher raw materials prices for the 13th consecutive month. Consistent with generally positive comments from the panel, all 18 industries reported growth in new orders for the month of March."

Of the 18 manufacturing industries, 17 reported growth in March in the following order: Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Furniture & Related Products; Textile Mills; Machinery; Primary Metals; Miscellaneous Manufacturing; Wood Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Paper Products; Transportation Equipment; Chemical Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Petroleum & Coal Products. No industry reported contraction in March compared to February.

WHAT RESPONDENTS ARE SAYING ...

  • "Business conditions continue to improve." (Chemical Products)
  • "Business outlook is positive." (Computer & Electronic Products)
  • "Regional business is strong. Hiring qualified team members has improved." (Fabricated Metal Products)
  • "We had a lot of storm orders, so it really pushed our sales up this month." (Miscellaneous Manufacturing)
  • "Starting to see some prices creeping up. We are raising our sales prices as well." (Food, Beverage & Tobacco Products)
  • "Business up 10-15 percent." (Machinery)
  • "Industry outlook is looking relatively flat currently, and the view for calendar year 2017 looks to be flat as well. Job market has been very good in the region, and finding talent has been challenging." (Transportation Equipment)
  • "Overall, material inflation is now clearly upon us." (Paper Products)
  • "Business is strong and looking up." (Furniture & Related Products)
  • "Opportunities for new business seem more abundant now. Orders and RFQs increasing." (Nonmetallic Mineral Products)

MANUFACTURING AT A GLANCE
March 2017



Index

Series
Index
Mar

Series
Index
Feb

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

57.2

57.7

-0.5

Growing

Slower

7

New Orders

64.5

65.1

-0.6

Growing

Slower

7

Production

57.6

62.9

-5.3

Growing

Slower

7

Employment

58.9

54.2

+4.7

Growing

Faster

6

Supplier Deliveries

55.9

54.8

+1.1

Slowing

Faster

11

Inventories

49.0

51.5

-2.5

Contracting

From
Growing

1

Customers' Inventories

47.0

47.5

-0.5

Too Low

Faster

6

Prices

70.5

68.0

+2.5

Increasing

Faster

13

Backlog of Orders

57.5

57.0

+0.5

Growing

Faster

2

New Export Orders

59.0

55.0

+4.0

Growing

Faster

13

Imports

53.5

54.0

-0.5

Growing

Slower

2

OVERALL ECONOMY

Growing

Slower

94

Manufacturing Sector

Growing

Slower

7

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

February 2017 Manufacturing ISM® Report On Business®

PMI® at 57.7%
New Orders, Production and Employment Growing
Supplier Deliveries Slowing
Inventories Growing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in February, and the overall economy grew for the 93rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee: “The February PMI® registered 57.7 percent, an increase of 1.7 percentage points from the January reading of 56 percent. The New Orders Index registered 65.1 percent, an increase of 4.7 percentage points from the January reading of 60.4 percent. The Production Index registered 62.9 percent, 1.5 percentage points higher than the January reading of 61.4 percent. The Employment Index registered 54.2 percent, a decrease of 1.9 percentage points from the January reading of 56.1 percent. Inventories of raw materials registered 51.5 percent, an increase of 3 percentage points from the January reading of 48.5 percent. The Prices Index registered 68 percent in February, a decrease of 1 percentage point from the January reading of 69 percent, indicating higher raw materials prices for the 12th consecutive month. Comments from the panel largely indicate strong sales and demand, and reflect a positive view of business conditions with a watchful eye on commodities and the potential for inflation.”

Of the 18 manufacturing industries, 17 reported growth in February in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Computer & Electronic Products; Primary Metals; Plastics & Rubber Products; Nonmetallic Mineral Products; Chemical Products; Paper Products; Fabricated Metal Products; Transportation Equipment; Food, Beverage & Tobacco Products; Wood Products; Electrical Equipment, Appliances & Components; Printing & Related Support Activities; Petroleum & Coal Products; and Miscellaneous Manufacturing. The only industry reporting contraction in February is Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING …

  • “Business [is] improving and lead times are extending by two or more weeks.” (Chemical Products)
  • “Very positive outlook for this quarter. Production goals have been adjusted multiple times and increased each time due to demand.” (Computer & Electronic Products)
  • “Product demand continues to be solid.” (Plastics & Rubber Products)
  • “Bookings are heavy early in the season. Expect robust first half of the year.” (Primary Metals)
  • “Demand still outstrips capacity. Competitors have announced heavy capital investments to increase capacity.” (Food, Beverage & Tobacco Products)
  • “Sales and business continue to be strong and increasing.” (Machinery)
  • “Business holding steady in Q1.” (Transportation Equipment)
  • “Medical device manufacturing is still strong.” (Miscellaneous Manufacturing)
  • “Even though oil and gas prices are on the upswing, we still face a tough 2017 and will continue to save on costs.” (Petroleum & Coal Products)
  • “Major focus on commodities and potential [for] further inflation.” (Electrical Equipment, Appliances & Components)

MANUFACTURING AT A GLANCE
February 2017

Index

Series Index

Feb

Series Index

Jan

Percentage

Point

Change

Direction

Rate of Change

Trend* (Months)

PMI®

57.7

56.0

+1.7

Growing

Faster

6

New Orders

65.1

60.4

+4.7

Growing

Faster

6

Production

62.9

61.4

+1.5

Growing

Faster

6

Employment

54.2

56.1

-1.9

Growing

Slower

5

Supplier Deliveries

54.8

53.6

+1.2

Slowing

Faster

10

Inventories

51.5

48.5

+3.0

Growing

From Contracting

1

Customers’ Inventories

47.5

48.5

-1.0

Too Low

Faster

5

Prices

68.0

69.0

-1.0

Increasing

Slower

12

Backlog of Orders

57.0

49.5

+7.5

Growing

From Contracting

1

New Export Orders

55.0

54.5

+0.5

Growing

Faster

12

Imports

54.0

50.0

+4.0

Growing

From Unchanged

1

OVERALL ECONOMY

Manufacturing Sector

Growing

Faster

93

Growing

Faster

6

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

January 2017 Manufacturing ISM® Report On Business®

PMI® at 56%
New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in January, and the overall economy grew for the 92nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee; “The January PMI® registered 56 percent, an increase of 1.5 percentage points from the seasonally adjusted December reading of 54.5 percent. The New Orders Index registered 60.4 percent, an increase of 0.1 percentage point from the seasonally adjusted December reading of 60.3 percent. The Production Index registered 61.4 percent, 2 percentage points higher than the seasonally adjusted December reading of 59.4 percent. The Employment Index registered 56.1 percent, an increase of 3.3 percentage points from the seasonally adjusted December reading of 52.8 percent. Inventories of raw materials registered 48.5 percent, an increase of 1.5 percentage points from the December reading of 47 percent. The Prices Index registered 69 percent in January, an increase of 3.5 percentage points from the December reading of 65.5 percent, indicating higher raw materials prices for the 11th consecutive month. The PMI®, New Orders, and Production Indexes all registered their highest levels since November of 2014, and comments from the panel are generally positive regarding demand levels and business conditions.”

Of the 18 manufacturing industries, 12 reported growth in January in the following order: Plastics & Rubber Products; Miscellaneous Manufacturing; Apparel, Leather & Allied Products; Paper Products; Chemical Products; Transportation Equipment; Food, Beverage & Tobacco Products; Machinery; Petroleum & Coal Products; Primary Metals; Fabricated Metal Products; and Computer & Electronic Products. The five industries reporting contraction in January are: Nonmetallic Mineral Products; Wood Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; and Printing & Related Support Activities.

WHAT RESPONDENTS ARE SAYING …

  • “Demand very steady to start the year.” (Chemical Products)
  • “January revenue target slightly lower following a big December shipment month.” (Computer & Electronic Products)
  • “Strong start to the new year. Production is increasing and we are adding capacity.” (Plastics & Rubber Products)
  • “Business looks stronger moving into the first quarter of 2017.” (Primary Metals)
  • “Economic outlook remains stable and no current effects of geopolitical changes appear to be penetrating market conditions.” (Food, Beverage & Tobacco Products)
  • “Sales bookings are exceeding expectations. We are starting to see supply shortages in hot rolled steel due to the curtailment of imports.” (Machinery)
  • “Year starting on pace with Q4 2016.” (Transportation Equipment)
  • “Business conditions are good, demand is generally increasing.” (Miscellaneous Manufacturing)
  • “Conditions and outlook remain positive. Raw material prices are stable resulting in stable margins. Asset utilization remains high.” (Petroleum & Coal Products)
  • “Steady demand from automotive.” (Fabricated Metal Products)

MANUFACTURING AT A GLANCE
January 2017

Index

Series Index

Jan

Series Index

Dec

Percentage

Point

Change

Direction

Rate of Change

Trend* (Months)

PMI®

56.0

54.5

+1.5

Growing

Faster

5

New Orders

60.4

60.3

+0.1

Growing

Faster

5

Production

61.4

59.4

+2.0

Growing

Faster

5

Employment

56.1

52.8

+3.3

Growing

Faster

4

Supplier Deliveries

53.6

53.0

+0.6

Slowing

Faster

9

Inventories

48.5

47.0

+1.5

Contracting

Slower

19

Customers’ Inventories

48.5

49.0

-0.5

Too Low

Faster

4

Prices

69.0

65.5

+3.5

Increasing

Faster

11

Backlog of Orders

49.5

49.0

+0.5

Contracting

Slower

7

New Export Orders

54.5

56.0

-1.5

Growing

Slower

11

Imports

50.0

50.5

-0.5

Unchanged

From Growing

1

OVERALL ECONOMY

Manufacturing Sector

Growing

Faster

92

Growing

Faster

5

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

Indexes reflect newly released seasonal adjustment factors.


 

December 2016 Manufacturing ISM® Report On Business®

PMI® at 54.7%

New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 91st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The December PMI® registered 54.7 percent, an increase of 1.5 percentage points from the November reading of 53.2 percent. The New Orders Index registered 60.2 percent, an increase of 7.2 percentage points from the November reading of 53 percent. The Production Index registered 60.3 percent, 4.3 percentage points higher than the November reading of 56 percent. The Employment Index registered 53.1 percent, an increase of 0.8 percentage point from the November reading of 52.3 percent. Inventories of raw materials registered 47 percent, a decrease of 2 percentage points from the November reading of 49 percent. The Prices Index registered 65.5 percent in December, an increase of 11 percentage points from the November reading of 54.5 percent, indicating higher raw materials prices for the 10th consecutive month. The PMI®, New Orders, Production and Employment Indexes all registered new highs for the year 2016, and the forward-looking comments from the panel are largely positive.”

Of the 18 manufacturing industries, 11 are reporting growth in December in the following order: Petroleum & Coal Products; Primary Metals; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Apparel, Leather & Allied Products; Paper Products; Machinery; Electrical Equipment, Appliances & Components; Computer & Electronic Products; Fabricated Metal Products; and Chemical Products. The six industries reporting contraction in December — listed in order — are: Plastics & Rubber Products; Furniture & Related Products; Printing & Related Support Activities; Textile Mills; Nonmetallic Mineral Products; and Transportation Equipment.

WHAT RESPONDENTS ARE SAYING …

  • “Ramping up for year-end by reducing inventory.” (Chemical Products)
  • “Very strong month in terms of booking and billing which will contribute to a good overall year revenue-wise.” (Computer & Electronic Products)
  • “Our business remains strong and we are seeing continued growth.” (Plastics & Rubber Products)
  • “We have been fairly steady the last few months and it appears business is strong into the 1st quarter of next year.” (Primary Metals)
  • “Moving into [a] more inflationary environment, with lots of pressure to increase prices on a number of fronts.” (Food, Beverage & Tobacco Products)
  • “Business continues to be brisk with an uptick of RFQs. Customers are earmarking funds for capital equipment upgrades.” (Machinery)
  • “Hiring still tight on available local labor. Business, by segments, still uneven. Some consumer markets very (seasonally) strong, but industrial markets lagging.” (Transportation Equipment)
  • “Business conditions are good, demand is growing.” (Miscellaneous Manufacturing)
  • “Continued strong demand for product and strong forecast for next year.” (Nonmetallic Mineral Products)
  • “December 2016 is way ahead of December 2015.” (Fabricated Metal Products)

MANUFACTURING AT A GLANCE
December 2016

Index

Series Index

Dec

Series Index

Nov

Percentage

Point

Change

Direction

Rate of Change

Trend* (Months)

PMI®

54.7

53.2

+1.5

Growing

Faster

4

New Orders

60.2

53.0

+7.2

Growing

Faster

4

Production

60.3

56.0

+4.3

Growing

Faster

4

Employment

53.1

52.3

+0.8

Growing

Faster

3

Supplier Deliveries

52.9

55.7

-2.8

Slowing

Slower

8

Inventories

47.0

49.0

-2.0

Contracting

Faster

18

Customers’ Inventories

49.0

49.0

0.0

Too Low

Same

3

Prices

65.5

54.5

+11.0

Increasing

Faster

10

Backlog of Orders

49.0

49.0

0.0

Contracting

Same

6

New Export Orders

56.0

52.0

+4.0

Growing

Faster

10

Imports

50.5

50.5

0.0

Growing

Same

3

OVERALL ECONOMY

Manufacturing Sector

Growing

Faster

91

Growing

Faster

4

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

November 2016 Manufacturing ISM® Report On Business®

PMI® at 53.2%

New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in November, and the overall economy grew for the 90th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The November PMI® registered 53.2 percent, an increase of 1.3 percentage points from the October reading of 51.9 percent. The New Orders Index registered 53 percent, an increase of 0.9 percentage point from the October reading of 52.1 percent. The Production Index registered 56 percent, 1.4 percentage points higher than the October reading of 54.6 percent. The Employment Index registered 52.3 percent, a decrease of 0.6 percentage point from the October reading of 52.9 percent. Inventories of raw materials registered 49 percent, an increase of 1.5 percentage points from the October reading of 47.5 percent. The Prices Index registered 54.5 percent in November, the same reading as in October, indicating higher raw materials prices for the ninth consecutive month. Comments from the panel cite increasing demand, some tightness in the labor market and plans to reduce inventory by the end of the year."

Of the 18 manufacturing industries, 11 are reporting growth in November in the following order: Miscellaneous Manufacturing; Petroleum & Coal Products; Paper Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Chemical Products; Fabricated Metal Products; Plastics & Rubber Products; Machinery; Nonmetallic Mineral Products; and Primary Metals. The six industries reporting contraction in November — listed in order — are: Printing & Related Support Activities; Wood Products; Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Transportation Equipment; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

  • "Raw materials have been rather flat. Ramping up for year-end and reducing inventory is main supply chain goal at this time." (Chemical Products)
  • "Strong manufacturing numbers in anticipation of strong year-end bookings." (Computer & Electronic Products)
  • "Business is still steady. We are foregoing our shutdown over Christmas break due to an increase in customer orders." (Plastics & Rubber Products)
  • "Heading into 2017, our business levels look pretty consistent compared to 2016." (Primary Metals)
  • "Sector remains strong, orders and forecasts are consistent and demand outlook is positive." (Food, Beverage & Tobacco Products)
  • "New spec buildings going up in our area. Local companies adding additional production space which equates to higher employment." (Machinery)
  • "Business conditions are good. Labor market is tightening such that it is difficult to staff to completely fulfill production demand." (Miscellaneous Manufacturing)
  • "We are seeing an upswing in customer Requests for Quotations this month; this is a positive sign for our business." (Textile Mills)
  • "Continued strong seasonal demand for product." (Nonmetallic Mineral Products)
  • "2017 is looking to be a very busy year." (Fabricated Metal Products)

MANUFACTURING AT A GLANCE
November 2016



Index
Series
Index
Nov
Series
Index
Oct
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 53.2 51.9 +1.3 Growing Faster 3
New Orders 53.0 52.1 +0.9 Growing Faster 3
Production 56.0 54.6 +1.4 Growing Faster 3
Employment 52.3 52.9 -0.6 Growing Slower 2
Supplier Deliveries 55.7 52.2 +3.5 Slowing Faster 7
Inventories 49.0 47.5 +1.5 Contracting Slower 17
Customers' Inventories 49.0 49.5 -0.5 Too Low Faster 2
Prices 54.5 54.5 0.0 Increasing Same 9
Backlog of Orders 49.0 45.5 +3.5 Contracting Slower 5
New Export Orders 52.0 52.5 -0.5 Growing Slower 9
Imports 50.5 52.0 -1.5 Growing Slower 2
OVERALL ECONOMY Growing Faster 90
Manufacturing Sector Growing Faster 3

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

October 2016 Manufacturing ISM® Report On Business®

PMI® at 51.9%

New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in October, and the overall economy grew for the 89th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The October PMI® registered 51.9 percent, an increase of 0.4 percentage point from the September reading of 51.5 percent. The New Orders Index registered 52.1 percent, a decrease of 3 percentage points from the September reading of 55.1 percent. The Production Index registered 54.6 percent, 1.8 percentage points higher than the September reading of 52.8 percent. The Employment Index registered 52.9 percent, an increase of 3.2 percentage points from the September reading of 49.7 percent. Inventories of raw materials registered 47.5 percent, a decrease of 2 percentage points from the September reading of 49.5 percent. The Prices Index registered 54.5 percent in October, an increase of 1.5 percentage points from the September reading of 53 percent, indicating higher raw materials prices for the eighth consecutive month. Comments from the panel are largely positive citing a favorable economy and steady sales, with some exceptions."

SPECIAL QUESTION

For inclusion in this report, our panel responded to a special question regarding the Hanjin Shipping Company bankruptcy to gain insights into the impact on their businesses this quarter. The responses were as follows:

  • Not impacted — 51.9%
  • Small, not material impact — 29.7%
  • Material, but manageable impact — 13.4%
  • Large material impact — 0.8%
  • Unsure — 4.2%

Of the 18 manufacturing industries, 10 are reporting growth in October in the following order: Textile Mills; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Computer & Electronic Products; Furniture & Related Products; Paper Products; Printing & Related Support Activities; Petroleum & Coal Products; and Chemical Products. The eight industries reporting contraction in October — listed in order — are: Wood Products; Apparel, Leather & Allied Products; Primary Metals; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; Fabricated Metal Products; and Machinery.

WHAT RESPONDENTS ARE SAYING ...

  • "Domestic business steady. Export business trending higher." (Chemical Products)
  • "Very favorable outlook in the market." (Computer & Electronic Products)
  • "We are looking at a considerable slowdown for October and November. Production is down 20 percent." (Primary Metals)
  • "Business is much better." (Fabricated Metal Products)
  • "Strong economy driving steady sales." (Food, Beverage & Tobacco Products)
  • "Due to the hurricane and other storms, our business is up significantly." (Machinery)
  • "Ongoing strength seen in 2016 — it’s a good year." (Miscellaneous Manufacturing)
  • "Customers continue to press price reductions." (Transportation Equipment)
  • "Our business remains strong." (Plastics & Rubber Products)
  • "Hard to predict oil price dynamics, but there seems to be a consensus that the market is stabilizing, at least above USD 50 bbl this month." (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
October 2016



Index
Series
Index
Oct
Series
Index
Sep
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 51.9 51.5 +0.4 Growing Faster 2
New Orders 52.1 55.1 -3.0 Growing Slower 2
Production 54.6 52.8 +1.8 Growing Faster 2
Employment 52.9 49.7 +3.2 Growing From Contracting 1
Supplier Deliveries 52.2 50.3 +1.9 Slowing Faster 6
Inventories 47.5 49.5 -2.0 Contracting Faster 16
Customers' Inventories 49.5 53.0 -3.5 Too Low From Too High 1
Prices 54.5 53.0 +1.5 Increasing Faster 8
Backlog of Orders 45.5 49.5 -4.0 Contracting Faster 4
New Export Orders 52.5 52.0 +0.5 Growing Faster 8
Imports 52.0 49.0 +3.0 Growing From Contracting 1
OVERALL ECONOMY Growing Faster 89
Manufacturing Sector Growing Faster 2

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

September 2016 Manufacturing ISM® Report On Business®

PMI® at 51.5%

New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in September following one month of contraction in August, and the overall economy grew for the 88th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The September PMI® registered 51.5 percent, an increase of 2.1 percentage points from the August reading of 49.4 percent. The New Orders Index registered 55.1 percent, an increase of 6 percentage points from the August reading of 49.1 percent. The Production Index registered 52.8 percent, 3.2 percentage points higher than the August reading of 49.6 percent. The Employment Index registered 49.7 percent, an increase of 1.4 percentage points from the August reading of 48.3 percent. Inventories of raw materials registered 49.5 percent, an increase of 0.5 percentage point from the August reading of 49 percent. The Prices Index registered 53 percent in September, the same reading as in August, indicating higher raw materials prices for the seventh consecutive month. Manufacturing expanded in September following one month of contraction in August, with nine of the 18 industries reporting an increase in new orders in September (up from six in August), and 10 of the 18 industries reporting an increase in production in September (up from eight in August)."

Of the 18 manufacturing industries, seven are reporting growth in September in the following order: Nonmetallic Mineral Products; Furniture & Related Products; Textile Mills; Food, Beverage & Tobacco Products; Computer & Electronic Products; Miscellaneous Manufacturing; and Paper Products. The 11 industries reporting contraction in September — listed in order — are: Printing & Related Support Activities; Petroleum & Coal Products; Wood Products; Apparel, Leather & Allied Products; Transportation Equipment; Machinery; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; and Electrical Equipment, Appliances & Components.

WHAT RESPONDENTS ARE SAYING ...

  • "Domestic and international sales moving up slightly." (Chemical Products)
  • "Negotiating prices down on all metals." (Computer & Electronic Products)
  • "Business is still strong, but we are seeing some pushouts from certain consumer market products." (Primary Metals)
  • "Sales on the increase and positive outlook for the remainder of 2016." (Fabricated Metal Products)
  • "Good growing conditions for this year’s corn and soybean crop has the protein market anticipating large supplies and lower cost of goods for 2017." (Food, Beverage & Tobacco Products)
  • "General business conditions are slowly improving with increased sales and sales leads." (Machinery)
  • "Furniture sales are increasing." (Furniture & Related Products)
  • "Some concern about fallout from the Hanjin Shipping bankruptcy. Spending time tracking containers — alternatives. Also, predicated on the impact to worldwide rates, there is some concern around both capacity and ocean rates in the near — to midterm future." (Transportation Equipment)
  • "Demand increase after previous lackluster month. Some pre-buying activity underway by customers in advance of expected price increases." (Plastics & Rubber Products)
  • "Oil prices have increased with respect to the first quarter but they remain at low levels affecting our revenue and purchasing power." (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
September 2016



Index

Series
Index
Sep

Series
Index
Aug

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

51.5

49.4

+2.1

Growing

From Contracting

1

New Orders

55.1

49.1

+6.0

Growing

From Contracting

1

Production

52.8

49.6

+3.2

Growing

From Contracting

1

Employment

49.7

48.3

+1.4

Contracting

Slower

3

Supplier Deliveries

50.3

50.9

-0.6

Slowing

Slower

5

Inventories

49.5

49.0

+0.5

Contracting

Slower

15

Customers' Inventories

53.0

49.5

+3.5

Too High

From Too Low

1

Prices

53.0

53.0

0.0

Increasing

Same

7

Backlog of Orders

49.5

45.5

+4.0

Contracting

Slower

3

New Export Orders

52.0

52.5

-0.5

Growing

Slower

7

Imports

49.0

47.0

+2.0

Contracting

Slower

2

OVERALL ECONOMY

Growing

Faster

88

Manufacturing Sector

Growing

From Contracting

1

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

August 2016 Manufacturing ISM® Report On Business®

PMI® at 49.4%

New Orders, Production and Employment Contracting
Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector contracted in August following five consecutive months of expansion, while the overall economy grew for the 87th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The August PMI® registered 49.4 percent, a decrease of 3.2 percentage points from the July reading of 52.6 percent. The New Orders Index registered 49.1 percent, a decrease of 7.8 percentage points from the July reading of 56.9 percent. The Production Index registered 49.6 percent, 5.8 percentage points lower than the July reading of 55.4 percent. The Employment Index registered 48.3 percent, a decrease of 1.1 percentage points from the July reading of 49.4 percent. Inventories of raw materials registered 49 percent, a decrease of 0.5 percentage point from the July reading of 49.5 percent. The Prices Index registered 53 percent, a decrease of 2 percentage points from the July reading of 55 percent, indicating higher raw materials prices for the sixth consecutive month. Manufacturing contracted in August for the first time since February of this year, as only six of our 18 industries reported an increase in new orders in August (down from 12 in July), and only eight of our 18 industries reported an increase in production in August (down from nine in July)."

Of the 18 manufacturing industries, six are reporting growth in August in the following order: Printing & Related Support Activities; Nonmetallic Mineral Products; Computer & Electronic Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; and Chemical Products. The 11 industries reporting contraction in August — listed in order — are: Electrical Equipment, Appliances & Components; Apparel, Leather & Allied Products; Plastics & Rubber Products; Furniture & Related Products; Transportation Equipment; Machinery; Textile Mills; Paper Products; Petroleum & Coal Products; Primary Metals; and Fabricated Metal Products.

WHAT RESPONDENTS ARE SAYING ...

  • "We have been getting lots of inquiries, but not a lot of sales order placements." (Chemical Products)
  • "Business was flat this month overall." (Computer & Electronic Products)
  • "Continued strong market demand for our products related to construction." (Nonmetallic Mineral Products)
  • "Commercial construction continues to be strong, and therefore our business is very good." (Fabricated Metal Products)
  • "New product distribution is increasing." (Food, Beverage & Tobacco Products)
  • "This past month, sales increased over the trend from the first half of the year. There seems to be a general, albeit slight, loosening of capital purse strings." (Machinery)
  • "Medical device is still strong." (Miscellaneous Manufacturing)
  • "Business conditions are generally flat." (Transportation Equipment)
  • "Hard to find production associates. Unemployment in the area is around 4 percent. Can’t get enough employees [which] leads to lots of overtime." (Plastics & Rubber Products)
  • "Oil prices continue to seek a ‘footing’; rig count slowly increasing." (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
August 2016



Index
Series
Index
Aug
Series
Index
Jul
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 49.4 52.6 -3.2 Contracting From Growing 1
New Orders 49.1 56.9 -7.8 Contracting From Growing 1
Production 49.6 55.4 -5.8 Contracting From Growing 1
Employment 48.3 49.4 -1.1 Contracting Faster 2
Supplier Deliveries 50.9 51.8 -0.9 Slowing Slower 4
Inventories 49.0 49.5 -0.5 Contracting Faster 14
Customers' Inventories 49.5 51.0 -1.5 Too Low From Too High 1
Prices 53.0 55.0 -2.0 Increasing Slower 6
Backlog of Orders 45.5 48.0 -2.5 Contracting Faster 2
New Export Orders 52.5 52.5 0.0 Growing Same 6
Imports 47.0 52.0 -5.0 Contracting From Growing 1
OVERALL ECONOMY Growing Slower 87
Manufacturing Sector Contracting From Growing 1

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.


 

July 2016 Manufacturing ISM® Report On Business®

PMI® at 52.6%

New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Slowing

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in July for the fifth consecutive month, while the overall economy grew for the 86th consecutive month, say the nation's supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The July PMI® registered 52.6 percent, a decrease of 0.6 percentage point from the June reading of 53.2 percent. The New Orders Index registered 56.9 percent, a decrease of 0.1 percentage point from the June reading of 57 percent. The Production Index registered 55.4 percent, 0.7 percentage point higher than the June reading of 54.7 percent. The Employment Index registered 49.4 percent, a decrease of 1 percentage point from the June reading of 50.4 percent. Inventories of raw materials registered 49.5 percent, an increase of 1 percentage point from the June reading of 48.5 percent. The Prices Index registered 55 percent, a decrease of 5.5 percentage points from the June reading of 60.5 percent, indicating higher raw materials prices for the fifth consecutive month. Manufacturing registered growth in July for the fifth consecutive month, as 12 of our 18 industries reported an increase in new orders in July (same as in June), and nine of our 18 industries reported an increase in production in July (down from 12 in June)."

Of the 18 manufacturing industries, 11 are reporting growth in July in the following order: Textile Mills; Printing & Related Support Activities; Miscellaneous Manufacturing; Wood Products; Furniture & Related Products; Chemical Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; and Computer & Electronic Products. The seven industries reporting contraction in July — listed in order — are: Apparel, Leather & Allied Products; Electrical Equipment, Appliances & Components; Plastics & Rubber Products; Machinery; Primary Metals; Transportation Equipment; and Paper Products.

WHAT RESPONDENTS ARE SAYING ...

  • "With Brexit, keeping [a] close eye on how this will impact our business." (Chemical Products)
  • "Stronger than expected end to Q2 (June) saw us beat our forecast which is the first time in five quarters, though we were still below Annual Operation Plan (AOP)." (Computer & Electronic Products)
  • "Strong demand in our market has business in an upswing." (Nonmetallic Mineral Products)
  • "International capital orders are increasing." (Fabricated Metal Products)
  • "Brexit has not impacted our business thus far." (Food, Beverage & Tobacco Products)
  • "Retail sales have really slowed in the last 45 days. Our industry is seeing it everywhere. Steel prices are rising." (Machinery)
  • "Seems to be a bit more optimism in the markets. But, U.S. Presidential race might dampen the mood." (Plastics & Rubber Products)
  • "Demand and industry production are both slowing down." (Transportation Equipment)
  • "Oversupply continues to dominate demand. Poor weather is having a negative impact on building, creating short term slow demand." (Wood Products)
  • "Oil and gas industry sector continues to realign staff to reflect $40-$50/barrel oil. This price range is seen as the new normal for the foreseeable future." (Petroleum & Coal Products)

MANUFACTURING AT A GLANCE
JULY 2016



Index

Series
Index
Jul

Series
Index
Jun

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

52.6

53.2

-0.6

Growing

Slower

5

New Orders

56.9

57.0

-0.1

Growing

Slower

7

Production

55.4

54.7

+0.7

Growing

Faster

7

Employment

49.4

50.4

-1.0

Contracting

From Growing

1

Supplier Deliveries

51.8

55.4

-3.6

Slowing

Slower

3

Inventories

49.5

48.5

+1.0

Contracting

Slower

13

Customers' Inventories

51.0

51.0

0.0

Too High

Same

2

Prices

55.0

60.5

-5.5

Increasing

Slower

5

Backlog of Orders

48.0

52.5

-4.5

Contracting

From Growing

1

New Export Orders

52.5

53.5

-1.0

Growing

Slower

5

Imports

52.0

52.0

0.0

Growing

Same

2

OVERALL ECONOMY

Growing

Slower

86

Manufacturing Sector

Growing

Slower

5

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.


June 2016 Manufacturing ISM® Report On Business

PMI® at 53.2%

New Orders, Production and Employment Growing
Inventories Contracting
Supplier Deliveries Slower

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in June for the fourth consecutive month, while the overall economy grew for the 85th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The June PMI® registered 53.2 percent, an increase of 1.9 percentage points from the May reading of 51.3 percent. The New Orders Index registered 57 percent, an increase of 1.3 percentage points from the May reading of 55.7 percent. The Production Index registered 54.7 percent, 2.1 percentage points higher than the May reading of 52.6 percent. The Employment Index registered 50.4 percent, an increase of 1.2 percentage points from the May reading of 49.2 percent. Inventories of raw materials registered 48.5 percent, an increase of 3.5 percentage points from the May reading of 45 percent. The Prices Index registered 60.5 percent, a decrease of 3 percentage points from the May reading of 63.5 percent, indicating higher raw materials prices for the fourth consecutive month. Manufacturing registered growth in June for the fourth consecutive month, as 12 of our 18 industries reported an increase in new orders in June (down from 14 in May), and 12 of our 18 industries reported an increase in production in June (same as in May)."

Of the 18 manufacturing industries, 13 are reporting growth in June in the following order: Printing & Related Support Activities; Textile Mills; Petroleum & Coal Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Apparel, Leather & Allied Products; Paper Products; Miscellaneous Manufacturing; Computer & Electronic Products; Chemical Products; Primary Metals; Machinery; and Nonmetallic Mineral Products. The three industries reporting contraction in June are: Electrical Equipment, Appliances & Components; Transportation Equipment; and Plastics & Rubber Products.

WHAT RESPONDENTS ARE SAYING ...

  • "We are gaining new customers through better sales management." (Food, Beverage & Tobacco Products)
  • "Slower shipments because of weather related flooding." (Chemical Products)
  • "Conditions have remained steady from [the] past month and are in line with our forecast." (Computer & Electronic Products)
  • "Very good start of summer for business levels/orders." (Fabricated Metal Products)
  • "Business is steady with some signs of increase." (Machinery)
  • "Business is still strong, but slowing slightly." (Transportation Equipment)
  • "Business conditions are good, production and demand are stable." (Miscellaneous Manufacturing)
  • "Orders are slowing from China. American customers still steady." (Primary Metals)
  • "Demand continues to be robust." (Plastics & Rubber Products)
  • "Business is still slower than expected." (Nonmetallic Mineral Products)

MANUFACTURING AT A GLANCE
JUNE 2016



Index
Series
Index
Jun
Series
Index
May
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI® 53.2 51.3 +1.9 Growing Faster 4
New Orders 57.0 55.7 +1.3 Growing Faster 6
Production 54.7 52.6 +2.1 Growing Faster 6
Employment 50.4 49.2 +1.2 Growing From Contracting 1
Supplier Deliveries 55.4 54.1 +1.3 Slowing Faster 2
Inventories 48.5 45.0 +3.5 Contracting Slower 12
Customers' Inventories 51.0 50.0 +1.0 Too High From Unchanged 1
Prices 60.5 63.5 -3.0 Increasing Slower 4
Backlog of Orders 52.5 47.0 +5.5 Growing From Contracting 1
New Export Orders 53.5 52.5 +1.0 Growing Faster 4
Imports 52.0 50.0 +2.0 Growing From Unchanged 1
OVERALL ECONOMY Growing Faster 85
Manufacturing Sector Growing Faster 4

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.


May 2016 Manufacturing ISM® Report On Business®

PMI® at 51.3%

New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Slower

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May for the third consecutive month, while the overall economy grew for the 84th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The May PMI® registered 51.3 percent, an increase of 0.5 percentage point from the April reading of 50.8 percent. The New Orders Index registered 55.7 percent, a decrease of 0.1 percentage point from the April reading of 55.8 percent. The Production Index registered 52.6 percent, 1.6 percentage points lower than the April reading of 54.2 percent. The Employment Index registered 49.2 percent, the same reading as in April. Inventories of raw materials registered 45 percent, a decrease of 0.5 percentage point from the April reading of 45.5 percent. The Prices Index registered 63.5 percent, an increase of 4.5 percentage points from the April reading of 59 percent, indicating higher raw materials prices for the third consecutive month. Manufacturing registered growth in May for the third consecutive month, as 14 of our 18 industries reported an increase in new orders in May (down from 15 in April), and 12 of our 18 industries reported an increase in production in May (down from 15 in April)."

Of the 18 manufacturing industries, 12 are reporting growth in May in the following order: Wood Products; Textile Mills; Printing & Related Support Activities; Fabricated Metal Products; Paper Products; Plastics & Rubber Products; Computer & Electronic Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Machinery; and Primary Metals. The six industries reporting contraction in May — listed in order — are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Transportation Equipment; Nonmetallic Mineral Products; Chemical Products; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

  • "Business conditions remain strong with the exception of South America. Continued expectation for a strong year even with the headwinds of currency and economic slowdown." (Food, Beverage & Tobacco Products)
  • "Consistent sales growth in greater China, North Asia, Southeast Asia, Canada and Mexico. Flat for the Americas and Europe." (Chemical Products)
  • "Slowdown in Chinese economy causing low orders." (Computer & Electronic Products)
  • "Continued brisk order flow for our business." (Fabricated Metal Products)
  • "Steady to slightly up production rates vs. prior month." (Machinery)
  • "Business is still good, but slowing." (Transportation Equipment)
  • "Business conditions are stable; demand is steady for our products." (Miscellaneous Manufacturing)
  • "Our business remains to be strong, but many of my suppliers are telling me their business is flat." (Plastics & Rubber Products)
  • "Oil & Gas continues to struggle to meet cost controls required in the new low-oil price environment." (Petroleum & Coal Products)
  • "Market is improving steadily in both orders and pricing." (Wood Products)

MANUFACTURING AT A GLANCE
MAY 2016



Index

Series
Index
May

Series
Index
Apr

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI® 51.3 50.8 +0.5 Growing Faster 3
New Orders 55.7 55.8 -0.1 Growing Slower 5
Production 52.6 54.2 -1.6 Growing Slower 5
Employment 49.2 49.2 0.0 Contracting Same 6
Supplier Deliveries 54.1 49.1 +5.0 Slower From
Faster
1
Inventories 45.0 45.5 -0.5 Contracting Faster 11
Customers' Inventories 50.0 46.0 +4.0 Unchanged From
Too Low
1
Prices 63.5 59.0 +4.5 Increasing Faster 3
Backlog of Orders 47.0 50.5 -3.5 Contracting From Growing 1
New Export Orders 52.5 52.5 0.0 Growing Same 3
Imports 50.0 50.0 0.0 Unchanged Same 2
OVERALL ECONOMY Growing Faster 84
Manufacturing Sector Growing Faster 3

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.


 

ECONOMIC GROWTH TO CONTINUE THROUGHOUT 2016

Manufacturing Growth Continues in 2016
Revenue to Increase 2.8%
Capital Expenditure to Increase 1.0%
Capacity Utilization Currently at 81.7%

Non-Manufacturing Growth Also Continues in 2016
Revenue to Increase 2.4%
Capital Expenditure to Increase 6.2%
Capacity Utilization Currently at 86.5%

(Tempe, AZ) —Economic growth is expected to continue in the United States throughout the remainder of 2016, say the nation's purchasing and supply executives in their Spring 2016 Semiannual Economic Forecast. Expectations for the remainder of 2016 continue to be positive in both the manufacturing and non-manufacturing sectors.

These projections are part of the forecast issued by the Business Survey Committee of the Institute for Supply Management® (ISM®). The forecast was presented today by Bradley J. Holcomb, CPSM, CPSD, chair of the ISM Manufacturing Business Survey Committee; and by Anthony S. Nieves, CPSM, C.P.M., CFPM, chair of the ISM Non-Manufacturing Business Survey Committee.

Manufacturing Summary

Fifty percent of respondents from the panel of manufacturing supply management executives predict their revenues will be 10.5 percent greater in 2016 compared to 2015, 18 percent expect a 14.2 percent decline, and 32 percent foresee no change in revenue. This yields an overall average forecast of 2.8 percent revenue growth among manufacturers for 2016. This current prediction is 1.3 percentage points below the December 2015 forecast of 4.1 percent revenue growth for 2016, but is 1.4 percent above the actual revenue growth reported for all of 2015. With operating capacity at 81.7 percent, an expected capital expenditure increase of 1 percent, an increase of 0.6 percent for prices paid for raw materials, and employment expected to remain the same for the balance of 2016, manufacturing is positioned to grow revenues while containing costs through the remainder of the year. “With 14 of the 18 industries within the manufacturing sector predicting revenue growth in 2016 when compared to 2015, U.S. manufacturing continues to move in a positive direction,” said Holcomb.

The 14 industries reporting expectations of growth in revenue for 2016 — listed in order — are: Fabricated Metal Products; Furniture & Related Products; Nonmetallic Mineral Products; Printing & Related Support Activities; Miscellaneous Manufacturing; Transportation Equipment; Plastics & Rubber Products; Chemical Products; Food, Beverage & Tobacco Products; Wood Products; Primary Metals; Textile Mills; Computer & Electronic Products; and Electrical Equipment, Appliances & Components.

The Manufacturing panel was also asked Special Questions related to the impact thus far in 2016 on their organization’s profits due to the strength of the US dollar, the net impact of the depressed prices of oil and related commodities, and the combined impact of both of these factors. Their responses are provided at the end of this report.

Non-Manufacturing Summary

Fifty-three percent of non-manufacturing purchasing and supply executives expect their 2016 revenues to be greater by 8.5 percent as compared to 2015. Overall, respondents currently expect a 2.4 percent net increase in overall revenues, which is less than the 2.7 percent increase that was forecast in December 2015. “Non-manufacturing will continue to grow for the balance of 2016. Non-manufacturing companies continue to operate very efficiently as reflected by the high percentage of capacity utilization. Supply managers have indicated that overall costs have not been significant with pricing projected to increase 0.9 percent over the year. Overall employment is projected to grow slightly at 0.7 percent. Thirteen out of 18 industries are forecasting increased revenues which is less than the 15 industries that forecasted increased revenues last year.  The non-manufacturing sector will continue on the path of steady economic growth throughout the year,” Nieves said.

The 13 non-manufacturing industries expecting increases in revenue in 2016 — listed in order — are: Management of Companies & Support Services; Information; Wholesale Trade; Construction; Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Accommodation & Food Services; Public Administration; Health Care & Social Assistance; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Professional, Scientific & Technical Services; and Utilities.

The Non-Manufacturing panel was also asked Special Questions related to the impact thus far in 2016 on their organization’s profits due to the strength of the US dollar, the net impact of the depressed prices of oil and related commodities, and the combined impact of both of these factors. Their responses are provided at the end of this report.


April 2016 Manufacturing ISM® Report On Business®

PMI® at 50.8%

New Orders and Production Growing
Employment and Inventories Contracting
Supplier Deliveries Faster

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in April for the second consecutive month, while the overall economy grew for the 83rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The April PMI® registered 50.8 percent, a decrease of 1 percentage point from the March reading of 51.8 percent. The New Orders Index registered 55.8 percent, a decrease of 2.5 percentage points from the March reading of 58.3 percent. The Production Index registered 54.2 percent, 1.1 percentage points lower than the March reading of 55.3 percent. The Employment Index registered 49.2 percent, 1.1 percentage points above the March reading of 48.1 percent. Inventories of raw materials registered 45.5 percent, a decrease of 1.5 percentage points from the March reading of 47 percent. The Prices Index registered 59 percent, an increase of 7.5 percentage points from the March reading of 51.5 percent, indicating higher raw materials prices for the second consecutive month. Manufacturing registered growth in April for the second consecutive month, as 15 of our 18 industries reported an increase in new orders in April (up from 13 in March), and 15 of our 18 industries reported an increase in production in April (up from 12 in March)."

Of the 18 manufacturing industries, 11 are reporting growth in April in the following order: Wood Products; Printing & Related Support Activities; Paper Products; Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Chemical Products; Machinery; Computer & Electronic Products; Nonmetallic Mineral Products; and Food, Beverage & Tobacco Products. The four industries reporting contraction in April are: Petroleum & Coal Products; Transportation Equipment; Miscellaneous Manufacturing; and Furniture & Related Products.

WHAT RESPONDENTS ARE SAYING ...

  • "We are still running at capacity. New CapEx for $30 million to increase capacity, but will not be online until 2017." (Food, Beverage & Tobacco Products)

  • "Remaining a bit sluggish overall although showing signs of a pickup in some areas." (Chemical Products)

  • "While oil prices have recovered slightly, the industry as a whole continues to struggle greatly." (Computer & Electronic Products)

  • "Steel prices are increasing, but it is supply-side driven. General economy is plugging along with no big changes. Kind of lackluster." (Fabricated Metal Products)

  • "Auto industry is still going strong." (Machinery)

  • "Sales are firming at the reduced levels we’ve seen this year. We think we have hit a bottom." (Transportation Equipment)

  • "Business conditions are stable. Sales and production rates are steady to improving." (Miscellaneous Manufacturing)

  • "Activity increasing as we move to our busy season." (Printing & Related Support Activities)

  • "Market is starting to pick up as expected." (Wood Products)

MANUFACTURING AT A GLANCE
APRIL 2016



Index

Series
Index
Apr

Series
Index
Mar

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI®

50.8

51.8

-1.0

Growing

Slower

2

New Orders

55.8

58.3

-2.5

Growing

Slower

4

Production

54.2

55.3

-1.1

Growing

Slower

4

Employment

49.2

48.1

+1.1

Contracting

Slower

5

Supplier Deliveries

49.1

50.2

-1.1

Faster

From
Slower

1

Inventories

45.5

47.0

-1.5

Contracting

Faster

10

Customers' Inventories

46.0

49.0

-3.0

Too Low

Faster

3

Prices

59.0

51.5

+7.5

Increasing

Faster

2

Backlog of Orders

50.5

51.0

-0.5

Growing

Slower

2

Exports

52.5

52.0

+0.5

Growing

Faster

2

Imports

50.0

49.5

+0.5

Unchanged

From
Contracting

1

OVERALL ECONOMY

Growing

Slower

83

Manufacturing Sector

Growing

Slower

2

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.
*Number of months moving in current direction.


 

March Manufacturing ISM® Report On Business®

PMI® at 51.8%

New Orders and Production Growing

Employment and Inventories Contracting

Supplier Deliveries Slower

PDF Download of this month's report

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in March for the first time in the last six months, while the overall economy grew for the 82nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The March PMI® registered 51.8 percent, an increase of 2.3 percentage points from the February reading of 49.5 percent. The New Orders Index registered 58.3 percent, an increase of 6.8 percentage points from the February reading of 51.5 percent. The Production Index registered 55.3 percent, 2.5 percentage points higher than the February reading of 52.8 percent. The Employment Index registered 48.1 percent, 0.4 percentage point below the February reading of 48.5 percent. Inventories of raw materials registered 47 percent, an increase of 2 percentage points above the February reading of 45 percent. The Prices Index registered 51.5 percent, an increase of 13 percentage points above the February reading of 38.5 percent, indicating higher raw materials prices for the first time since October 2014. Manufacturing registered growth in March for the first time since August 2015, as 12 of our 18 industries reported sector growth, and 13 of our 18 industries reported an increase in new orders in March.”

Of the 18 manufacturing industries, 12 are reporting growth in March in the following order: Printing & Related Support Activities; Furniture & Related Products; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Machinery; Plastics & Rubber Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; Chemical Products; Paper Products; Primary Metals; and Computer & Electronic Products. The five industries reporting contraction in March are: Apparel, Leather & Allied Products; Textile Mills; Electrical Equipment, Appliances & Components; Transportation Equipment; and Petroleum & Coal Products.

WHAT RESPONDENTS ARE SAYING …

  • “Unemployment rate is low in our county, making it hard to find workers. We are understaffed and running lots of overtime.” (Plastics & Rubber Products)
  • “Business in telecom is booming. Fiber plant is at capacity.” (Chemical Products)
  • “Current trends remain steady. No issues with delivery or costs.” (Computer & Electronic Products)
  • “Capital equipment sales are steady.” (Fabricated Metal Products)
  • “Requests for proposals for new equipment [are] very strong.” (Machinery)
  • “Government is spending again. Have received delivery orders.” (Transportation Equipment)
  • “Things are starting to pick up. Our business is seasonal and it is that time of year.” (Printing & Related Support Activities)
  • “Business conditions are stable, little change from last month.” (Miscellaneous Manufacturing)
  • “Incoming sales are improving.” (Furniture & Related Products)
  • “Our business is still going strong.” (Primary Metals)

MANUFACTURING AT A GLANCE

March 2016

Index

Series Index

Mar

Series Index

Feb

Percentage

Point

Change

Direction

Rate of Change

Trend* (Months)

PMI®

51.8

49.5

+2.3

Growing

From Contracting

1

New Orders

58.3

51.5

+6.8

Growing

Faster

3

Production

55.3

52.8

+2.5

Growing

Faster

3

Employment

48.1

48.5

-0.4

Contracting

Faster

4

Supplier Deliveries

50.2

49.7

+0.5

Slower

From
Faster

1

Inventories

47.0

45.0

+2.0

Contracting

Slower

9

Customers’ Inventories

49.0

47.0

+2.0

Too Low

Slower

2

Prices

51.5

38.5

+13.0

Increasing

From Decreasing

1

Backlog of Orders

51.0

48.5

+2.5

Growing

From Contracting

1

Exports

52.0

46.5

+5.5

Growing

From Contracting

1

Imports

49.5

49.0

+0.5

Contracting

Slower

2

OVERALL ECONOMY

 

Manufacturing Sector

Growing

Faster

82

Growing

From Contracting

1

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.


 

February 2016 Manufacturing ISM® Report On Business®

PMI® at 49.5%

New Orders and Production Growing

Employment and Inventories Contracting

Supplier Deliveries Faster

(Tempe, Arizona) — Economic activity in the manufacturing sector contracted in February for the fifth consecutive month, while the overall economy grew for the 81st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. "The February PMI® registered 49.5 percent, an increase of 1.3 percentage points from the January reading of 48.2 percent. The New Orders Index registered 51.5 percent, the same reading as in January. The Production Index registered 52.8 percent, 2.6 percentage points higher than the January reading of 50.2 percent. The Employment Index registered 48.5 percent, 2.6 percentage points above the January reading of 45.9 percent. Inventories of raw materials registered 45 percent, an increase of 1.5 percentage points above the January reading of 43.5 percent. The Prices Index registered 38.5 percent, an increase of 5 percentage points above the January reading of 33.5 percent, indicating lower raw materials prices for the 16th consecutive month. Comments from the panel indicate a more positive view of demand than in January, as 12 of our 18 industries report an increase in new orders, while four industries report a decrease in new orders."

Of the 18 manufacturing industries, nine are reporting growth in February in the following order: Textile Mills; Wood Products; Furniture & Related Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Chemical Products; Primary Metals; and Paper Products. The seven industries reporting contraction in February — listed in order — are: Apparel, Leather & Allied Products; Petroleum & Coal Products; Computer & Electronic Products; Printing & Related Support Activities; Transportation Equipment; Plastics & Rubber Products; and Fabricated Metal Products.

WHAT RESPONDENTS ARE SAYING …

  • "Low oil prices and reduced activity continue affecting our business." (Petroleum & Coal Products)
  • "U.S. business demand is solid; international demand is soft." (Chemical Products)
  • "Mobility spend is up." (Computer & Electronic Products)
  • "Business has to get better. And it appears it is. Healthy backlog for 2016." (Fabricated Metal Products)
  • "Very strong demand for product. Material availability very good and commodity pricing continues to be depressed." (Machinery)
  • "Airlines are still ordering planes and spare parts for plane galleys." (Transportation Equipment)
  • "Market is beginning to trend up with spring season on its way." (Wood Products)
  • "Not seeing impact from global economic volatility or oil prices. Business is strong and growth projections remain the same." (Miscellaneous Manufacturing)
  • "Orders are coming in stronger than expected." (Furniture & Related Products)
  • "Still a bit sluggish." (Food, Beverage & Tobacco Products)

MANUFACTURING AT A GLANCE

FEBRUARY 2016



Index

Series
Index
Feb

Series
Index
Jan

Percentage
Point
Change



Direction

Rate
of
Change


Trend*
(Months)

PMI® 49.5 48.2 +1.3 Contracting Slower 5
New Orders 51.5 51.5 0.0 Growing Same 2
Production 52.8 50.2 +2.6 Growing Faster 2
Employment 48.5 45.9 +2.6 Contracting Slower 3
Supplier Deliveries 49.7 50.0 -0.3 Faster From
Unchanged
1
Inventories 45.0 43.5 +1.5 Contracting Slower 8
Customers' Inventories 47.0 51.5 -4.5 Too Low From
Too High
1
Prices 38.5 33.5 +5.0 Decreasing Slower 16
Backlog of Orders 48.5 43.0 +5.5 Contracting Slower 9
Exports 46.5 47.0 -0.5 Contracting Faster 2
Imports 49.0 51.0 -2.0 Contracting From
Growing
1
OVERALL ECONOMY Growing Faster 81
Manufacturing Sector Contracting Slower 5

Manufacturing ISM® Report On Business® data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries indexes.

*Number of months moving in current direction.


January Manufacturing ISM® Report On Business®

 

PMI® at 48.2%

New Orders, and Production Growing

Employment and Inventories Contracting

Supplier Deliveries Unchanged

 

(Tempe, Arizona) — Economic activity in the manufacturing sector contracted in January for the fourth consecutive month, while the overall economy grew for the 80th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM® Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “The January PMI® registered 48.2 percent, an increase of 0.2 percentage point from the seasonally adjusted December reading of 48 percent. The New Orders Index registered 51.5 percent, an increase of 2.7 percentage points from the seasonally adjusted reading of 48.8 percent in December. The Production Index registered 50.2 percent, 0.3 percentage point higher than the seasonally adjusted December reading of 49.9 percent. The Employment Index registered 45.9 percent, 2.1 percentage points below the seasonally adjusted December reading of 48 percent. Inventories of raw materials registered 43.5 percent, the same reading as in December. The Prices Index registered 33.5 percent, the same reading as in December, indicating lower raw materials prices for the 15th consecutive month. Comments from the panel indicate a mix ranging from strong to soft orders, as eight of our 18 industries report an increase in orders, and seven industries report a decrease in orders.”

Of the 18 manufacturing industries, eight are reporting growth in January in the following order: Textile Mills; Wood Products; Miscellaneous Manufacturing; Printing & Related Support Activities; Furniture & Related Products; Computer & Electronic Products; Machinery; and Electrical Equipment, Appliances & Components. The 10 industries reporting contraction in January — listed in order — are: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Paper Products; Transportation Equipment; Plastics & Rubber Products; Fabricated Metal Products; Food, Beverage & Tobacco Products; Primary Metals; and Chemical Products.

WHAT RESPONDENTS ARE SAYING …

  • “The oil and gas sector continues to be challenged by low oil and gas prices. Risk of suppliers filing for bankruptcy and reducing their workforce is becoming an increasing risk. Our company workforce is also declining.” (Petroleum & Coal Products)
  • “Business this month [is] better than last month and better than this period last year. Reduced oil and basic chemical prices providing favorable margin comparisons.” (Chemical Products)
  • “Huge rollout in wireless in 2016 across all markets. We should be very, very busy.” (Computer & Electronic Products)
  • “We are a bit slower, but staying busy.” (Fabricated Metal Products)
  • “Business is still strong, but slowing.” (Transportation Equipment)
  • “2016 starting off with strong orders.” (Primary Metals)
  • “Market is sluggish to start the year.” (Wood Products)
  • “Medical device continues to be strong.” (Miscellaneous Manufacturing)
  • “Overall demand is higher than expected for post-holiday season.” (Plastics & Rubber Products)
  • “Much worldwide macroeconomic uncertainty affecting our business. Business confidence seems low.” (Food, Beverage & Tobacco Products)

MANUFACTURING AT A GLANCE

January 2016

Index

Series Index

Jan

Series Index

Dec

Percentage

Point

Change

Direction

Rate of Change

Trend* (Months)

PMI®

48.2

48.0

+0.2

Contracting

Slower

4

New Orders

51.5

48.8

+2.7

Growing

From Contracting

1

Production

50.2

49.9

+0.3

Growing

From Contracting

1

Employment

45.9

48.0

-2.1

Contracting

Faster

2

Supplier Deliveries

50.0

49.8

+0.2

Unchanged

From Faster

1

Inventories

43.5

43.5

0.0

Contracting

Same

7

Customers’ Inventories

51.5

51.5

0.0

Too High

Same

6

Prices

33.5

33.5

0.0

Decreasing

Same

15

Backlog of Orders

43.0

41.0

+2.0

Contracting

Slower

8

Exports

47.0

51.0

-4.0

Contracting

From Growing

1

Imports

51.0

45.5

+5.5

Growing

From Contracting

1

OVERALL ECONOMY

 

Manufacturing Sector

Growing

Faster

80

Contracting

Slower

4

Manufacturing ISM® Report On Business® data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes.

*Number of months moving in current direction.

Indexes reflect newly released seasonal adjustment factors.

 

COMMODITIES REPORTED UP/DOWN IN PRICE AND IN SHORT SUPPLY

Commodities Up in Price

Natural Gas; and Steel*.

Commodities Down in Price

Aluminum (14); Copper (3); Crude Oil (2); Diesel (2); Gasoline (2); HDPE Resin (2); Nickel (7); Oil (2); Resin Based Products; Stainless Steel (15); Steel* (7); Steel – Cold Rolled (4); and Steel – Hot Rolled (4).

Commodities in Short Supply

None (3).

Note: The number of consecutive months the commodity is listed is indicated after each item.

*Reported as both up and down in price.

 

ISM Makes Annual Adjustments to Seasonal Factors for ISM Manufacturing PMI® and Diffusion Indexes and ISM Non-Manufacturing NMI® and Diffusion Indexes

FOR RELEASE: January 29, 2015

Contact:    Kathleen Lacy
  ISM, ROB/Research
Report On Business® Analyst
  Tempe, Arizona
  800/888-6276, Ext. 3143
  klacy@ism.ws

(Tempe, Arizona) — Based on input from an independent expert, Institute for Supply Management® recently announced the completion of its annual adjustments to the seasonal factors used in the monthly Institute for Supply Management® (ISM) Manufacturing Report On Business® and the monthly Institute for Supply Management® (ISM) Non-Manufacturing Report On Business®. Economists and managers who track these indexes will note that changes are effective with the January 2015 ISM Manufacturing Report On Business®, which is scheduled to be released on February 2, 2015, and the January 2015 ISM Non-Manufacturing Report On Business®, which will be released on February 4, 2015.

Seasonal adjustment factors are used to allow for the effects of repetitive intra-year variations resulting primarily from normal differences in weather conditions, various institutional arrangements, and differences attributable to non-movable holidays. It is standard practice to project the seasonal adjustment factors used to calculate the indexes one year ahead (2015).

As in previous years, the X-13-ARIMA program was used to develop the revisions to the Manufacturing and Non-Manufacturing indexes for 2011 through 2014, as well as the 2015 projected seasonal factors. The 2015 seasonal factors will be recomputed when the actual data are known in early 2016. Projected seasonal factors for 2015 and revised seasonally adjusted indexes are shown below, followed by charts tracking both the former and the revised PMI® for Manufacturing and NMI® and Business Activity Indexes for Non-Manufacturing.


2015 Seasonal Adjustment Factors for ISM Manufacturing Indexes

  New
Orders

Production

Employment
Supplier
Deliveries
Jan 2015 1.012 0.964 0.970 1.020
Feb 2015 1.058 1.034 1.012 1.003
Mar 2015 1.081 1.060 1.020 1.029
Apr 2015 1.103 1.108 1.077 1.037
May 2015 1.030 1.065 1.045 1.006
Jun 2015 0.973 0.990 1.009 0.994
Jul 2015 0.930 0.955 1.015 1.023
Aug 2015 0.977 0.979 0.987 0.996
Sep 2015 0.968 0.974 0.970 0.997
Oct 2015 0.955 0.964 0.967 0.972
Nov 2015 0.992 0.985 0.964 0.949
Dec 2015 0.924 0.924 0.966 0.975

 

To compute the PMI®:

1)  Calculate the unadjusted diffusion index for New Orders, Production, Employment and Supplier Deliveries to two decimal places (percent higher or slower plus one half of the percent same or unchanged). For Inventories, it will be percent higher plus one half of the percent same or unchanged.

2)  Divide each unadjusted diffusion index by its seasonal factor (round to one decimal place).

3)  Add all five index numbers together and divide by five.

To compute other indexes, follow steps #1 and #2 above for each indicator.

 

2015 Seasonal Adjustment Factors for ISM Non-Manufacturing Indexes

  Business
Activity
New
Orders

Employment

Prices
Jan 2015 0.935 0.941 0.949 1.032
Feb 2015 0.993 1.015 1.002 1.047
Mar 2015 1.070 1.046 1.034 1.068
Apr 2015 1.063 1.039 1.050 1.047
May 2015 1.050 1.053 1.058 1.010
Jun 2015 0.976 1.003 1.082 1.018
Jul 2015 1.002 0.987 1.032 1.006
Aug 2015 0.994 0.978 0.991 0.975
Sep 2015 0.997 1.015 0.935 0.971
Oct 2015 0.960 0.951 0.955 0.958
Nov 2015 0.988 1.017 0.927 0.925
Dec 2015 0.971 0.953 0.988 0.945

 

To compute the NMI®:

1)  Calculate the unadjusted diffusion index for Business Activity, New Orders and Employment to two decimal places (percent higher or up plus one half of the percent same or unchanged). For Supplier Deliveries, it will be percent slower plus one half of the percent same or unchanged.

2)  Divide each unadjusted diffusion index by its seasonal factor (round to one decimal place).

3)  Add all four index numbers together and divide by four.

To compute other indexes, follow steps #1 and #2 above for each indicator.

 

Revised Manufacturing Seasonally Adjusted Indexes 2011-2014

  PMI® New
Orders
Production Employment Supplier
Deliveries
Jan 2011 59.1 62.1 63.7 60.7 57.0
Feb 2011 59.6 61.9 64.9 61.6 58.9
Mar 2011 59.2 61.7 63.9 60.9 60.3
Apr 2011 59.3 62.1 61.3 59.7 58.9
May 2011 53.9 53.9 53.4 57.5 56.0
Jun 2011 56.9 55.9 57.4 61.0 56.6
Jul 2011 52.7 54.4 54.4 55.3 51.5
Aug 2011 52.8 51.3 51.5 54.6 52.1
Sep 2011 52.7 51.3 53.3 54.7 52.2
Oct 2011 51.4 51.2 52.1 54.9 52.1
Nov 2011 51.7 54.0 53.7 52.9 51.2
Dec 2011 52.8 55.3 58.8 54.7 49.7
 
Jan 2012 52.9 55.2 55.2 54.2 50.4
Feb 2012 53.1 55.9 58.1 53.9 48.1
Mar 2012 53.3 55.9 56.8 55.1 48.7
Apr 2012 54.2 57.3 60.1 56.4 48.5
May 2012 53.4 58.9 55.1 56.5 50.4
Jun 2012 51.3 51.5 53.9 56.7 50.4
Jul 2012 50.1 49.2 50.5 52.1 49.7
Aug 2012 50.7 48.4 49.1 52.5 50.5
Sep 2012 51.9 53.0 51.1 54.1 50.9
Oct 2012 50.7 50.2 50.9 52.9 49.5
Nov 2012 48.9 49.5 51.2 48.6 50.2
Dec 2012 50.0 50.3 51.9 52.2 52.5
 
Jan 2013 52.6 51.6 54.8 54.2 51.5
Feb 2013 54.1 57.0 58.3 52.7 51.1
Mar 2013 52.0 52.7 54.6 52.8 50.2
Apr 2013 50.3 50.6 53.2 50.4 50.8
May 2013 50.1 51.1 50.8 49.5 50.0
Jun 2013 52.8 55.9 55.6 50.8 51.1
Jul 2013 54.4 58.0 60.7 54.0 52.2
Aug 2013 55.6 61.5 62.0 54.5 52.7
Sep 2013 55.6 60.7 59.7 54.6 53.1
Oct 2013 55.8 58.9 59.2 54.1 54.2
Nov 2013 56.0 60.2 60.9 55.3 53.3
Dec 2013 56.1 64.9 60.4 55.2 53.1
 
Jan 2014 51.8 52.8 56.0 52.6 53.8
Feb 2014 54.3 56.1 52.1 52.8 57.9
Mar 2014 54.4 56.4 57.3 51.9 53.8
Apr 2014 55.3 56.2 57.1 54.7 55.4
May 2014 55.6 58.7 59.0 53.5 53.6
Jun 2014 55.7 59.1 59.9 53.9 52.7
Jul 2014 56.4 62.0 60.9 56.3 54.3
Aug 2014 58.1 63.9 63.1 57.4 54.2
Sep 2014 56.1 59.4 62.4 54.6 52.6
Oct 2014 57.9 63.0 62.8 55.2 56.1
Nov 2014 57.6 62.1 62.6 54.6 57.0
Dec 2014 55.1 57.8 57.7 56.0 58.6

 

The revised breakeven point for the overall economy is a PMI® of 43.1 percent. A PMI® over 43.1 percent indicates an expanding overall economy. A PMI® below 43.1 percent indicates the overall economy is declining. The ISM Manufacturing Inventories Index is no longer seasonally adjusted as of January 2012.

 

Revised Non-Manufacturing Seasonally Adjusted Indexes 2011-2014

  NMI® Business
Activity
New
Orders
Employment Prices
Jan 2011 57.2 61.5 61.7 51.9 70.2
Feb 2011 57.2 63.4 59.5 53.9 70.6
Mar 2011 55.8 58.6 60.0 53.0 70.5
Apr 2011 55.4 57.1 57.5 53.9 71.1
May 2011 55.0 54.8 56.3 54.7 70.3
Jun 2011 54.4 56.6 55.8 53.0 62.3
Jul 2011 53.7 56.5 54.2 53.5 60.4
Aug 2011 53.7 56.0 54.4 51.5 60.8
Sep 2011 52.5 56.1 54.9 49.3 61.3
Oct 2011 52.8 54.1 53.3 51.9 58.4
Nov 2011 53.0 55.8 53.4 52.9 63.5
Dec 2011 52.6 55.9 54.1 48.8 62.0
 
Jan 2012 55.8 58.8 58.5 54.7 61.5
Feb 2012 55.5 60.4 58.2 53.8 66.8
Mar 2012 55.5 59.1 58.1 55.3 64.8
Apr 2012 54.6 55.9 55.8 55.0 56.5
May 2012 54.3 56.0 55.9 52.4 53.0
Jun 2012 53.5 54.7 55.5 52.6 49.8
Jul 2012 52.5 55.4 54.8 50.4 54.9
Aug 2012 53.2 54.5 54.1 52.8 61.7
Sep 2012 54.9 59.2 55.9 52.8 66.1
Oct 2012 54.4 56.7 55.6 53.9 62.0
Nov 2012 54.9 60.3 57.0 53.3 58.2
Dec 2012 55.8 60.7 59.1 54.8 56.4
 
Jan 2013 55.1 56.6 56.0 55.3 57.1
Feb 2013 55.7 57.2 57.6 56.3 60.3
Mar 2013 55.0 57.3 56.4 53.2 56.1
Apr 2013 53.9 55.6 55.8 53.3 52.5
May 2013 53.9 56.4 56.2 51.0 53.3
Jun 2013 53.7 54.7 53.5 55.0 55.3
Jul 2013 55.3 58.3 56.3 54.0 57.5
Aug 2013 57.1 59.7 58.3 55.7 53.1
Sep 2013 54.0 54.8 57.6 53.5 56.9
Oct 2013 55.0 59.6 56.5 54.9 56.9
Nov 2013 53.8 54.5 55.2 54.3 53.3
Dec 2013 53.1 55.3 50.5 55.2 55.2
 
Jan 2014 54.3 56.6 52.2 56.0 57.0
Feb 2014 52.5 55.7 53.0 48.4 56.0
Mar 2014 53.7 54.2 54.8 53.7 58.1
Apr 2014 55.3 60.3 58.3 52.2 60.4
May 2014 56.1 61.1 59.9 53.2 60.2
Jun 2014 56.3 59.2 60.4 54.5 60.1
Jul 2014 57.9 61.3 62.6 56.1 60.0
Aug 2014 58.6 63.1 62.1 56.6 57.3
Sep 2014 58.1 62.0 60.5 57.8 55.2
Oct 2014 56.9 60.5 59.3 58.3 52.8
Nov 2014 58.8 63.4 61.0 56.3 55.0
Dec 2014 56.5 58.6 59.2 55.7 49.8

 

Charts Illustrating Former and Revised Indexes

ISM Manufacturing Index (PMI®) Chart: 2011-2014

ISM Non-Manufacturing Index (NMI®) Chart: 2011-2014

 

The ISM Report On Business® is considered by many economists to be the most reliable near-term economic barometer available. It is reviewed regularly by top government agencies and economic and business leaders for its timely, accurate information. The Manufacturing and Non-Manufacturing ISM Report On Business® is published monthly by the Institute for Supply Management®. Each month, both reports are compiled from responses to questions asked of purchasing and supply executives across the country and reflects change, if any, in the current month compared to previous months. Institute for Supply Management® (ISM) is the first supply management institute in the world. Founded in 1915, ISM's mission is to enhance the value and performance of procurement and supply chain management practitioners and their organizations worldwide. By executing and extending its mission through education, research, standards of excellence and information dissemination — including the renowned monthly ISM Report On Business® — ISM maintains a strong global influence among individuals and organizations.


 

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