Economic activity in the manufacturing sector expanded in January for the 18th 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 by Norbert J. Ore, CPSM, C.P.M., chair of the Institute for Supply Management Manufacturing Business Survey Committee. "The manufacturing sector grew at a faster rate in January as the PMI registered 60.8%, which is its highest level since May 2004 when the index registered 61.4%. The continuing strong performance is highlighted as January is also the sixth consecutive month of month-over-month growth in the sector. New orders and production continue to be strong, and employment rose above 60% for the first time since May 2004. Global demand is driving commodity prices higher, particularly for energy, metals and chemicals."
Performance by industry
Of the 18 manufacturing industries, 14 are reporting growth in January, in the following order: Petroleum and Coal Products; Primary Metals; Apparel, Leather and Allied Products; Wood Products; Computer and Electronic Products; Transportation Equipment; Fabricated Metal Products; Machinery; Paper Products; Miscellaneous Manufacturing; Chemical Products; Furniture and Related Products; Food, Beverage and Tobacco Products; and Electrical Equipment, Appliances and Components. The four industries reporting contraction in January are: Textile Mills; Printing and Related Support Activities; Plastics and Rubber Products; and Nonmetallic Mineral Products.
|MANUFACTURING AT A GLANCE
|Customers' Inventories||45.5||40.0||+5.5||Too Low||Slower||22|
|Backlog of Orders||58.0||47.0||+11.0||Growing||From Contracting||1|
*Number of months moving in current direction.
Commodities reported up/down in price and in short supply
Commodities up in price
Aluminum (5); Aluminum Products; Brass (2); Brass Products; Caustic Soda (6); Chemicals (4); Copper (6); Copper Based Products (3); Corn (5); Corrugated Containers (11); Diesel (2); Freight Rates; Fuel Oils; High Density Polyethylene (2); Lubricants; Nuts; Packaging Materials; PET (2); Plastics; Plastic Products; Plastic Resins (3); Polyethylene Resin; Polypropylene; Soybean Oil (3); Stainless Steel (3); Stainless Steel Products; Steel (5); Steel Products (2); Steel Surcharges; and Sugar.
Commodities down in price
No commodities are reported down in price.
Commodities in short supply
Electric Components is the only commodity reported in short supply.