U.S. Manufacturing Sector Growing, with Inventories Contracting, Supplier Deliveries Slowing

 

Economic activity in the U.S. manufacturing sector expanded in December 2014 for the 19th consecutive month, and the overall economy grew for the 67th consecutive month, the nation's supply executives reported in the latest Manufacturing ISM Report on Business. The report was issued by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee, Tempe, Ariz., USA. 

  

The December PMI® registered 55.5%, a decrease of 3.2 percentage points from November's reading of 58.7%. The New Orders Index registered 57.3%, a decrease of 8.7 percentage points from the reading of 66% in November. The Production Index registered 58.8%, 5.6 percentage points below the November reading of 64.4%. The Employment Index registered 56.8%, an increase of 1.9 percentage points above the November reading of 54.9%. Inventories of raw materials registered 45.5%, a decrease of 6 percentage points from the November reading of 51.5%. The Prices Index registered 38.5%, down 6 percentage points from the November reading of 44.5%, indicating lower raw materials prices in December relative to November. 

 

Of the 18 manufacturing industries, 11 are reporting growth in December in the following order: Printing & Related Support Activities; Fabricated Metal Products; Primary Metals; Furniture & Related Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Textile Mills; Paper Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; and Transportation Equipment. The six industries reporting contraction in December (listed in order) are: Plastics & Rubber Products; Wood Products; Machinery; Nonmetallic Mineral Products; Chemical Products; and Computer & Electronic Products.

 

More information is available online.