TEMPE, AZ — Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 103rd consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report on Business.
The report was issued Wednesday by Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee:
- The December PMI registered 59.7 percent, an increase of 1.5 percentage points from the November reading of 58.2 percent
- The New Orders Index registered 69.4 percent, an increase of 5.4 percentage points from the November reading of 64 percent
- The Production Index registered 65.8 percent, a 1.9 percentage point increase compared to the November reading of 63.9 percent
- The Employment Index registered 57 percent, a decrease of 2.7 percentage points from the November reading of 59.7 percent.
- The Supplier Deliveries Index registered 57.9 percent, a 1.4 percentage point increase from the November reading of 56.5 percent
- The Inventories Index registered 48.5 percent, an increase of 1.5 percentage points from the November reading of 47 percent
- The Prices Index registered 69 percent in December, a 3.5 percentage point increase from the November reading of 65.5 percent, indicating higher raw materials prices for the 22nd consecutive month
Comments from the panel reflect expanding business conditions, with new orders and production leading gains; employment expanding at a slower rate; order backlogs expanding at a faster rate; and export orders and imports continuing to grow in December. Supplier deliveries continued to slow (improving) at a faster rate, and inventories continued to contract at a slower rate during the period. Price increases continued at a faster rate. The Customers’ Inventories Index declined and remains at low levels.
Of the 18 manufacturing industries, 16 reported growth in December in the following order: Machinery; Computer & Electronic Products; Paper Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Primary Metals; Nonmetallic Mineral Products; Petroleum & Coal Products; Plastics & Rubber Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Furniture & Related Products; Transportation Equipment; Chemical Products; Fabricated Metal Products; and Electrical Equipment, Appliances & Components. Two industries reported contraction during the period: Wood Products; and Textile Mills.
| MANUFACTURING AT A GLANCE - DECEMBER 2017 | ||||||
|---|---|---|---|---|---|---|
| Index | Series Index Dec | Series Index Nov | Percentage Point Change | Direction | Rate of Change | Trend* (Months) |
| PMI® | 59.7 | 58.2 | +1.5 | Growing | Faster | 16 |
| New Orders | 69.4 | 64.0 | +5.4 | Growing | Faster | 16 |
| Production | 65.8 | 63.9 | +1.9 | Growing | Faster | 16 |
| Employment | 57.0 | 59.7 | -2.7 | Growing | Slower | 15 |
| Supplier Deliveries | 57.9 | 56.5 | +1.4 | Slowing | Faster | 20 |
| Inventories | 48.5 | 47.0 | +1.5 | Contracting | Slower | 3 |
| Customers’ Inventories | 42.0 | 45.5 | -3.5 | Too Low | Faster | 6 |
| Prices | 69.0 | 65.5 | +3.5 | Increasing | Faster | 22 |
| Backlog of Orders | 56.0 | 55.0 | +1.0 | Growing | Faster | 11 |
| New Export Orders | 58.5 | 56.0 | +2.5 | Growing | Faster | 22 |
| Imports | 57.5 | 54.5 | +3.0 | Growing | Faster | 11 |
| OVERALL ECONOMY | Growing | Faster | 103 | |||
| Manufacturing Sector | Growing | Faster | 16 | |||
| Manufacturing ISM Report On Business data is seasonally adjusted for the New Orders, Production, Employment and Supplier Deliveries Indexes. *Number of months moving in current direction. |
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| THE LAST 12 MONTHS | |
|---|---|
| Month | PMI® |
| December 2017 | 59.7 |
| November 2017 | 58.2 |
| October 2017 | 58.7 |
| September 2017 | 60.8 |
| August 2017 | 58.8 |
| July 2017 | 56.3 |
| June 2017 | 57.8 |
| May 2017 | 54.9 |
| April 2017 | 54.8 |
| March 2017 | 57.2 |
| February 2017 | 57.7 |
| January 2017 | 56.0 |
| Average (12 months) | 57.6 |
