U.S. Manufacturing, Including P&P, Reporting Continued Growth in All Sectors
 Print this article | Send to Colleague
Economic activity in the U.S. manufacturing sector expanded in March for the 32nd consecutive month, and the overall economy grew for the 34th consecutive month, according to the nation's supply executives in the latest Manufacturing ISM Report On Business®. The report was issued this week by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee, Tempe, Ariz., USA.
The PMI registered 53.4%, an increase of 1 percentage point from February's 52.4%, indicating expansion in the manufacturing sector for the 32nd consecutive month. The Production Index increased 3 percentage points from February's 55.3% to 58.3%, and the Employment Index increased 2.9 percentage points to 56.1%. Of the 18 industries included in the survey, 15 are experiencing overall growth. Comments from the panel remain positive, with several respondents citing increased sales and demand for the next few months.
The 15 manufacturing industries reporting growth in March, in the following order, are: Apparel, Leather & Allied Products; Nonmetallic Mineral Products; Primary Metals; Petroleum and Coal Products; Paper Products; Machinery; Miscellaneous Manufacturing; Wood Products; Furniture and Related Products; Transportation Equipment; Plastics and Rubber Products; Food, Beverage, and Tobacco Products; Printing and Related Support Activities; Fabricated Metal Products; and Electrical Equipment, Appliances, and Components. The two industries reporting contraction in March were Computer and Electronic Products and Chemical Products.
ISM's New Orders Index registered 54.5% in March, a decrease of 0.4 percentage point compared with the February reading of 54.9%. This represents a continuation of growth for the 35th consecutive month, but at a slightly slower rate. A New Orders Index above 52.3%, over time, is generally consistent with an increase in the Census Bureau's series on manufacturing orders (in constant 2000 dollars).
The 15 industries reporting growth in new orders in March (listed in order) are: Apparel, Leather, and Allied Products; Nonmetallic Mineral Products; Plastics and Rubber Products; Primary Metals; Wood Products; Printing and Related Support Activities; Transportation Equipment; Furniture, and Related Products; Paper Products; Miscellaneous Manufacturing; Food, Beverage, and Tobacco Products; Machinery; Petroleum, and Coal Products; Fabricated Metal Products; and Chemical Products. The two industries reporting decreases in new orders in March are Computer and Electronic Products and Electrical Equipment, Appliances, and Components.
ISM's Production Index registered 58.3% in March, an increase of 3 percentage points compared with the 55.3% reported in February. This indicates growth for the 34th consecutive month. An index above 51.2%, over time, is generally consistent with an increase in the Federal Reserve Board's Industrial Production figures.
The 15 industries reporting growth in production during the month of March (listed in order) are: Apparel, Leather, and Allied Products; Primary Metals; Petroleum and Coal Products; Nonmetallic Mineral Products; Furniture and Related Products; Miscellaneous Manufacturing; Paper Products; Plastics and Rubber Products; Machinery; Printing and Related Support Activities; Food, Beverage, and Tobacco Products; Transportation Equipment; Fabricated Metal Products; Chemical Products; and Electrical Equipment, Appliances, and Components. The only industry reporting a decrease in production in March is Computer and Electronic Products.
ISM's Employment Index registered 56.1% in March, 2.9 percentage points higher than the 53.2% reported in February. This is the 30th consecutive month of growth in the Employment Index. An Employment Index above 50.5%, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) data on manufacturing employment.
Of the 18 manufacturing industries, 12 reported growth in employment in March in the following order: Apparel, Leather, and Allied Products; Paper Products; Wood Products; Petroleum and Coal Products; Nonmetallic Mineral Products; Primary Metals; Machinery; Miscellaneous Manufacturing; Transportation Equipment; Fabricated Metal Products; Electrical Equipment, Appliances and Components; and Food, Beverage, and Tobacco Products. The three industries reporting a decrease in employment in March are Computer & Electronic Products; Chemical Products; and Plastics and Rubber Products.
The Inventories Index registered 50% in March, 0.5 percentage point higher than the 49.5% reported in February. This month's reading, at 50%, indicates that respondents are reporting inventories unchanged from last month. An Inventories Index greater than 42.8%, over time, is generally consistent with expansion in the Bureau of Economic Analysis' (BEA) figures on overall manufacturing inventories (in chained 2000 dollars).
The seven industries reporting higher inventories in March (listed in order) are: Machinery; Nonmetallic Mineral Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances, and Components; Food, Beverage, and Tobacco Products; Computer and Electronic Products; and Petroleum and Coal Products. The six industries reporting decreases in inventories (listed in order) are: Primary Metals; Chemical Products; Paper Products; Transportation Equipment; Plastics and Rubber Products; and Apparel, Leather, and Allied Products.
The full text version of the Manufacturing ISM Report On Business is available online.
|
|
