TEMPE, AZ — Economic activity in the U.S. manufacturing sector expanded in January, and the overall economy grew for the 92nd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
The report was issued Wednesday by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee; “The January PMI registered 56 percent, an increase of 1.5 percentage points from the seasonally adjusted December reading of 54.5 percent. The New Orders Index registered 60.4 percent, an increase of 0.1 percentage point from the seasonally adjusted December reading of 60.3 percent. The Production Index registered 61.4 percent, 2 percentage points higher than the seasonally adjusted December reading of 59.4 percent. The Employment Index registered 56.1 percent, an increase of 3.3 percentage points from the seasonally adjusted December reading of 52.8 percent. Inventories of raw materials registered 48.5 percent, an increase of 1.5 percentage points from the December reading of 47 percent. The Prices Index registered 69 percent in January, an increase of 3.5 percentage points from the December reading of 65.5 percent, indicating higher raw materials prices for the 11th consecutive month. The PMI, New Orders, and Production Indexes all registered their highest levels since November of 2014, and comments from the panel are generally positive regarding demand levels and business conditions.”
Of the 18 manufacturing industries, 12 reported growth in January in the following order: Plastics & Rubber Products; Miscellaneous Manufacturing; Apparel, Leather & Allied Products; Paper Products; Chemical Products; Transportation Equipment; Food, Beverage & Tobacco Products; Machinery; Petroleum & Coal Products; Primary Metals; Fabricated Metal Products; and Computer & Electronic Products. The five industries reporting contraction in January are: Nonmetallic Mineral Products; Wood Products; Furniture & Related Products; Electrical Equipment, Appliances & Components; and Printing & Related Support Activities.
| Last 12 Months | |
|---|---|
| Month | PMI |
| January 2017 | 56.0 |
| December 2016 | 54.5 |
| November 2016 | 53.5 |
| October 2016 | 52.0 |
| September 2016 | 51.7 |
| August 2016 | 49.4 |
| July 2016 | 52.3 |
| June 2016 | 52.8 |
| May 2016 | 51.0 |
| April 2016 | 50.7 |
| March 2016 | 51.7 |
| February 2016 | 49.7 |
| 12-month average | 52.1 |
WHAT RESPONDENTS ARE SAYING …
- “Demand very steady to start the year.” (Chemical Products)
- “January revenue target slightly lower following a big December shipment month.” (Computer & Electronic Products)
- “Strong start to the new year. Production is increasing and we are adding capacity.” (Plastics & Rubber Products)
- “Business looks stronger moving into the first quarter of 2017.” (Primary Metals)
- “Economic outlook remains stable and no current effects of geopolitical changes appear to be penetrating market conditions.” (Food, Beverage & Tobacco Products)
- “Sales bookings are exceeding expectations. We are starting to see supply shortages in hot rolled steel due to the curtailment of imports.” (Machinery)
- “Year starting on pace with Q4 2016.” (Transportation Equipment)
- “Business conditions are good, demand is generally increasing.” (Miscellaneous Manufacturing)
- “Conditions and outlook remain positive. Raw material prices are stable resulting in stable margins. Asset utilization remains high.” (Petroleum & Coal Products)
- “Steady demand from automotive.” (Fabricated Metal Products)
