Economic activity in the manufacturing sector expanded in
December for the 17th consecutive month, and the overall economy
grew for the 20th consecutive month, say the nation's supply executives
in the latest Manufacturing ISM Report On Business.
The report was issued today by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector continued its growth trend as indicated by this month's report. We saw significant recovery for much of the U.S. manufacturing sector in 2010. The recovery centered on strength in autos, metals, food, machinery, computers and electronics, while those industries tied primarily to housing continue to struggle. Additionally, manufacturers that export have benefited from both global demand and the weaker dollar. December's strong readings in new orders and production, combined with positive comments from the panel, should create momentum as we go into the first quarter of 2011."
PERFORMANCE BY INDUSTRY
Of the 18 manufacturing industries, 11 are reporting growth in December, in the following order: Apparel, Leather & Allied Products; Primary Metals; Fabricated Metal Products; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; Textile Mills; Plastics & Rubber Products; Transportation Equipment; Electrical Equipment, Appliances & Components; and Chemical Products. The four industries reporting contraction in December are: Nonmetallic Mineral Products; Paper Products; Printing & Related Support Activities; and Miscellaneous Manufacturing.
WHAT RESPONDENTS ARE SAYING ¦
"Company outlook looks positive into 2011. Solid revenue growth across the globe driven by strong volume in Q3 and Q4 2010." (Chemical Products)
"We continue to see strong demand for our product in Europe and Asia." (Electrical Equipment, Appliances & Components)
"The end of the year is surprisingly busy." (Computer & Electronic Products)
"Business remains slow, while vendors clamor for increases that should have no foundation in economics." (Nonmetallic Mineral Products)
"Strong pressure still exists on raw material prices in almost every area. It is unclear as to whether they can get them." (Plastics & Rubber Products)
MANUFACTURING AT A GLANCEDECEMBER 2010
Index SeriesIndexDecember SeriesIndexNovember PercentagePointChange Direction Rate ofChange Trend(a)(Months)
PMI 57.0 56.6 +0.4 Growing Faster 17
New Orders 60.9 56.6 +4.3 Growing Faster 18
Production 60.7 55.0 +5.7 Growing Faster 19
Employment 55.7 57.5 -1.8 Growing Slower 13
Supplier Deliveries 55.9 57.2 -1.3 Slowing Slower 19
Inventories 51.8 56.7 -4.9 Growing Slower 6
Customers' Inventories 40.0 45.5 -5.5 Too Low Faster 21
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