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December Manufacturing Data Points to Growth

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with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.

Of the 18 manufacturing industries, nine reported growth in employment in December in the following order: Apparel, Leather & Allied Products; Primary Metals; Fabricated Metal Products; Food, Beverage & Tobacco Products; Computer & Electronic Products; Transportation Equipment; Machinery; Electrical Equipment, Appliances & Components; and Paper Products. The five industries reporting a decrease in employment during December are: Nonmetallic Mineral Products; Furniture & Related Products; Miscellaneous Manufacturing; Printing & Related Support Activities; and Textile Mills.

Employment %Higher %Same %Lower Net Index

Dec 2010 22 66 12 +10 55.7

Nov 2010 25 65 10 +15 57.5

Oct 2010 26 64 10 +16 57.7

Sep 2010 25 62 13 +12 56.5 -------------------------------------------------------------------------------

Supplier Deliveries

The delivery performance of suppliers to manufacturing organizations was slower in December as the Supplier Deliveries Index registered 55.9 percent, which is 1.3 percentage points lower than the 57.2 percent registered in November. This is the 19th consecutive month the Supplier Deliveries Index has been above 50 percent. A reading above 50 percent indicates slower deliveries.

The eight industries reporting slower supplier deliveries in December ” listed in order ” are: Plastics & Rubber Products; Primary Metals; Fabricated Metal Products; Machinery; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Chemical Products; and Transportation Equipment. The two industries reporting faster deliveries in December are: Printing & Related Support Activities; and Computer & Electronic Products.

Supplier Deliveries %Slower %Same %Faster Net Index

Dec 2010 15 78 7 +8 55.9

Nov 2010 18 77 5 +13 57.2

Oct 2010 13 77 10 +3 51.2

Sep 2010 17 76 7 +10 52.3 -------------------------------------------------------------------------------

Inventories

Manufacturers' inventories grew for the sixth consecutive month in December, but at a slower rate as the Inventories Index registered 51.8 percent. The index is 4.9 percentage points lower than the 56.7 percent reported in November. An Inventories Index greater than 42.6 percent, over time, is generally consistent with expansion in the Bureau of Economic Analysis' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).

The six industries reporting higher inventories in December ” listed in order ” are: Apparel, Leather & Allied Products; Textile Mills; Machinery; Computer & Electronic Products; Food, Beverage & Tobacco Products; and Chemical Products. The eight industries reporting decreases in inventories in December ” listed in order ” are: Nonmetallic Mineral Products; Furniture & Related Products; Printing &

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