The manufacturing sector is expanding, but the pace of growth is slowing down

Source: ISM

Sep 02, 2010

Economic activity in the manufacturing sector expanded in July for the twelfth consecutive month, and the overall economy grew for the fifteenth consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

The report was issued by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "Manufacturing continued to grow during July, but at a slightly slower rate than in June. Employment, supplier deliveries and inventories improved during the month and reduced the impact of a month-over-month deceleration in new orders and production. July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list."

Performance by industry

Ten of the 18 manufacturing industries are reporting growth in July, in the following order: Plastics and Rubber Products; Miscellaneous Manufacturing; Paper Products; Electrical Equipment, Appliances and Components; Transportation Equipment; Primary Metals; Textile Mills; Computer and Electronic Products; Fabricated Metal Products; and Chemical Products. The four industries reporting contraction in July are: Nonmetallic Mineral Products; Furniture and Related Products; Food, Beverage and Tobacco Products; and Machinery.

Manufacturing at a glance
July 2010



PMI 55.5 56.2 -0.7 Growing Slower 12
New Orders 53.5 58.5 -5.0 Growing Slower 13
Production 57.0 61.4 -4.4 Growing Slower 14
Employment 58.6 57.8 +0.8 Growing Faster 8
Supplier Deliveries 58.3 57.3 +1.0 Slowing Faster 14
Inventories 50.2 45.8 +4.4 Growing From Contracting 1
Customers' Inventories 39.0 38.0 +1.0 Too Low Slower 16
Prices 57.5 57.0 +0.5 Increasing Faster 13
Backlog of Orders 54.5 57.0 -2.5 Growing Slower 7
Exports 56.5 56.0 +0.5 Growing Faster 13
Imports 52.5 56.5 -4.0 Growing Slower 11
OVERALL ECONOMY Growing Slower 15
Manufacturing Sector Growing Slower 12
*Number of months moving in current direction

Commodities reported up/down in price and in short supply

Commodities up in price:

Capacitors; Corrugated Containers (5); Paper; Pulp; Steel* (13); and Titanium.

Commodities down in price:

Machined Steel Parts; Polyethylene, Polypropylene Resins (2); and Steel*.

Commodities in short supply:

Capacitors; Electrical Components; and Titanium Dioxide.

Note: The number of consecutive months the commodity is listed is indicated after each item.
*Reported as both up and down in price.

Download the complete Manufacturing ISM Report On Business