ISM Indexes Continue Firmly in Recovery/Expansion, Now Even Including Employment
Description:
The Institute for Supply Management™ Manufacturing and Non-Manufacturing Report on Business®
The Institute for Supply Management™ ISM Manufacturing Report On Business® is considered by many economists to be the most reliable near-term economic barometer available. Except for a four-year interruption during World War II, the Report has been published monthly since 1931 for the guidance of supply management professionals, economists, analysts, and government and business leaders.
Alan Greenspan, Ph.D., former chairman of the Federal Reserve Board, has said of the ISM Manufacturing Report On Business®, "I find the surveys conducted by the purchasing and supply managers to be an excellent supplement to the data supplied by various departments and agencies of government."
According to Joseph E. Stiglitz, former chairman of President Clinton's Council of Economic Advisors, "The ISM Manufacturing Report On Business® has one of the shortest reporting lags of any macro-economic series and gives an important early look at the economy. It also measures some concepts (such as lead times and delivery lags) that can be found nowhere else. It makes an important contribution to the American statistical system and to economic policy."
January 2011 Manufacturing ISM Report On Business®
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 today 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 percent, which is its highest level since May 2004 when the index registered 61.4 percent. 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 percent 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 & Coal Products; Primary Metals; Apparel, Leather & Allied Products; Wood Products; Computer & Electronic Products; Transportation Equipment; Fabricated Metal Products; Machinery; Paper Products; Miscellaneous Manufacturing; Chemical Products; Furniture & Related Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. The four industries reporting contraction in January are: Textile Mills; Printing & Related Support Activities; Plastics & Rubber Products; and Nonmetallic Mineral Products.
ISM Manufacturing Employment Index (Graph Courtesy St. Louis Fed)
Readings below 50 indicate progressively contracting manufacturing labor; above 50 indicates progressively expanding. Readings above 60 are considered very strong, while readings below 40 are considered very weak.
The Institute for Supply Management™ Manufacturing and Non-Manufacturing Report on Business®
The Institute for Supply Management™ ISM Manufacturing Report On Business® is considered by many economists to be the most reliable near-term economic barometer available. Except for a four-year interruption during World War II, the Report has been published monthly since 1931 for the guidance of supply management professionals, economists, analysts, and government and business leaders.
Alan Greenspan, Ph.D., former chairman of the Federal Reserve Board, has said of the ISM Manufacturing Report On Business®, "I find the surveys conducted by the purchasing and supply managers to be an excellent supplement to the data supplied by various departments and agencies of government."
According to Joseph E. Stiglitz, former chairman of President Clinton's Council of Economic Advisors, "The ISM Manufacturing Report On Business® has one of the shortest reporting lags of any macro-economic series and gives an important early look at the economy. It also measures some concepts (such as lead times and delivery lags) that can be found nowhere else. It makes an important contribution to the American statistical system and to economic policy."
January 2011 Manufacturing ISM Report On Business®
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 today 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 percent, which is its highest level since May 2004 when the index registered 61.4 percent. 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 percent 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 & Coal Products; Primary Metals; Apparel, Leather & Allied Products; Wood Products; Computer & Electronic Products; Transportation Equipment; Fabricated Metal Products; Machinery; Paper Products; Miscellaneous Manufacturing; Chemical Products; Furniture & Related Products; Food, Beverage & Tobacco Products; and Electrical Equipment, Appliances & Components. The four industries reporting contraction in January are: Textile Mills; Printing & Related Support Activities; Plastics & Rubber Products; and Nonmetallic Mineral Products.
ISM Manufacturing Employment Index (Graph Courtesy St. Louis Fed)
Readings below 50 indicate progressively contracting manufacturing labor; above 50 indicates progressively expanding. Readings above 60 are considered very strong, while readings below 40 are considered very weak.