American manufacturing is continuing to expand

Source: ISM

Jan 12, 2011

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 benefitted 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 and Allied Products; Primary Metals; Fabricated Metal Products; Machinery; Computer and Electronic Products; Food, Beverage and Tobacco Products; Textile Mills; Plastics and Rubber Products; Transportation Equipment; Electrical Equipment, Appliances and Components; and Chemical Products. The four industries reporting contraction in December are: Nonmetallic Mineral Products; Paper Products; Printing and Related Support Activities; and Miscellaneous Manufacturing.


MANUFACTURING AT A GLANCE
DECEMBER 2010


Index
Series
Index
December
Series
Index
November
Percentage
Point
Change


Direction
Rate
of
Change

Trend*
(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
Prices 72.5 69.5 +3.0 Increasing Faster 18
Backlog of Orders 47.0 46.0 +1.0 Contracting Slower 4
Exports 54.5 57.0 -2.5 Growing Slower 18
Imports 50.5 53.0 -2.5 Growing Slower 16
             
OVERALL ECONOMY Growing Faster 20
Manufacturing Sector Growing Faster 17
*Number of months moving in current direction.

Commodities reported up/down in price and in short supply

Commodities up in price

Aluminum; Brass; Caustic Soda; Chemicals; Copper; Copper Based Products; Corn; Corrugated Containers; Diesel; Electronic Components; Gasoline; High Density Polyethylene; Natural Gas*; Nickel; PET; Plastic Resins; Polyester; Polyethylene; Resins; Soybean Oil; Stainless Steel; Starch; Steel; Steel Products; Sulfur; Tin Plate; Titanium Dioxide; and Wheat.

Commodities down in price

Natural Gas* is the only commodity reported down in price.

Commodities in short supply

Cocoa Powder is the only commodity reported in short supply.

* Reported as both up and down in price.
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