The manufacturing sector continues to grow, with new orders and production making significant gains

Source: ISM

Nov 23, 2010

Economic activity in the manufacturing sector expanded in October for the fifteenth consecutive month, and the overall economy grew for the eighteenth consecutive month, according to 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 grew during October, with both new orders and production making significant gains. Since hitting a peak in April, the trend for manufacturing has been toward slower growth. However, this month's report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter. Survey respondents note the recovery in autos, computers and exports as key drivers of this growth. Concerns about inventory growth are lessened by the improvement in new orders during October. With 14 of 18 industries reporting growth in October, manufacturing continues to outperform the other sectors of the economy."

Performance by industry

Of the 18 manufacturing industries, 14 are reporting growth in October, in the following order: Apparel, Leather and Allied Products; Primary Metals; Petroleum and Coal Products; Machinery; Electrical Equipment, Appliances and Components; Miscellaneous Manufacturing; Fabricated Metal Products; Paper Products; Printing and Related Support Activities; Transportation Equipment; Computer and Electronic Products; Food, Beverage and Tobacco Products; Plastics and Rubber Products; and Chemical Products. The two industries reporting contraction in October are: Nonmetallic Mineral Products; and Furniture and Related Products.

MANUFACTURING AT A GLANCE
OCTOBER 2010


Index
Series
Index
October
Series
Index
September
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(Months)
PMI 56.9 54.4 +2.5 Growing Faster 15
New Orders 58.9 51.1 +7.8 Growing Faster 16
Production 62.7 56.5 +6.2 Growing Faster 17
Employment 57.7 56.5 +1.2 Growing Faster 11
Supplier Deliveries 51.2 52.3 -1.1 Slowing Slower 17
Inventories 53.9 55.6 -1.7 Growing Slower 4
Customers' Inventories 44.0 42.5 +1.5 Too Low Slower 19
Prices 71.0 70.5 +0.5 Increasing Faster 16
Backlog of Orders 46.0 46.5 -0.5 Contracting Faster 2
Exports 60.5 54.5 +6.0 Growing Faster 16
Imports 51.5 56.5 -5.0 Growing Slower 14
             
OVERALL ECONOMY Growing Faster 18
Manufacturing Sector Growing Faster 15

*Number of months moving in current direction.

Commodities reported up/down in price and in short supply

Commodities up in price

Aluminum (2); Aluminum Extrusions; Caustic Soda (3); Chemicals; Copper (3); Corn (2); Corrugated Containers (8); Lubricants (2); Polyethylene (2); Polypropylene (2); Silver; Stainless Steel Sheets (2); Steel (2); Sulfuric Acid; and Transportation.

Commodities down in price

No commodities are reported down in price.

Commodities in short supply

Cocoa Powder (2); and Electronic Components (2).

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