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August Manufacturing ISM Report on Business

 

PMI at 55.7%; new orders, production and employment growing


PRESS RELEASE
Institute for Supply Management
  

 

(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in August for the third consecutive month, and the overall economy grew for the 51st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®.

The report was issued today by Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. “The PMI™ registered 55.7 percent, an increase of 0.3 percentage point from July’s reading of 55.4 percent. August’s PMI™ reading, the highest of the year, indicates expansion in the manufacturing sector for the third consecutive month. The New Orders Index increased in August by 4.9 percentage points to 63.2 percent, and the Production Index decreased by 2.6 percentage points to 62.4 percent. The Employment Index registered 53.3 percent, a decrease of 1.1 percentage points compared to July’s reading of 54.4 percent. The Prices Index registered 54 percent, increasing 5 percentage points from July, indicating that overall raw materials prices increased when compared to last month. Comments from the panel range from slow to improving business conditions depending upon the industry.”

Of the 18 manufacturing industries, 15 are reporting growth in August in the following order: Textile Mills; Wood Products; Electrical Equipment, Appliances & Components; Food, Beverage & Tobacco Products; Nonmetallic Mineral Products; Plastics & Rubber Products; Computer & Electronic Products; Printing & Related Support Activities; Furniture & Related Products; Primary Metals; Fabricated Metal Products; Transportation Equipment; Machinery; Chemical Products; and Paper Products. The only industry reporting contraction in August is Miscellaneous Manufacturing.
 
WHAT RESPONDENTS ARE SAYING …

• “Slight improvements in both domestic and international sales.” (Fabricated Metal Products)
• “Business is slowing down, not sure why — but we may end up below last year’s sales levels, whereas we had forecast 6.5 percent growth.” (Miscellaneous Manufacturing)
• “Material prices continue to be favorable; business is steady.” (Paper Products)
• “Slowing down slightly, but still stronger than last year by 20 percent.” (Furniture & Related Products)
• “Military slowdown affecting business.” (Computer & Electronic Products)
• “Summer seasonal businesses are doing well after a late start.” (Printing & Related Support Activities)
• “Still not seeing the year we had expected. Cautious about the balance of 2013.” (Machinery)
• “Tight government spending still affecting business.” (Transportation Equipment)
• “With improved weather outlook in the central states, agricultural prices are relaxing year over year.” (Food, Beverage & Tobacco Products)
• “We have benefitted from the Yen; seeing a 20 percent decrease in material costs from 2012 to 2013.” (Chemical Products)

 

Manufacturing at a Glance--
August 2013
           
Index
Series Index Aug.    Series Index July  % Point Change  Direction    Rate of Chance   Trend* (Months)
PMI

    55.7    

     55.4      +0.3 Growing        Faster              3
New Orders

    63.2

     58.3      +4.9 Growing        Faster             3
Production

    62.4

     65.0      -2.6 Growing       Slower             3
Employment

    53.3

     54.4      -1.1 Growing       Slower             2
Supplier Deliveries

    52.3

     52.1      +0.2 Slowing       Faster             2
Inventories

    47.5

     47.0      +0.5 Contracting       Slower             2
Customers' Inventories

    42.5

     47.5      -5.0 Too Low       Faster            21
Prices

    54.0

     49.0      +5.0 Increasing       From Decreasing             1
Backlog of Orders

    46.5

     45.0      +1.5 Contracting        Slower             4
Exports

    55.5

     53.5      +2.0 Growing        Faster             9
Imports

    58.0

     57.5      +0.5 Growing        Faster             7
Overall Economy--

Manufacturing Sector--
      Growing

Growing
Faster

Faster

            51

             3

*Number of months moving in current direction

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price
Corrugated Boxes (13); Corrugated Packaging (4); Lumber; Oil (2); Oil Based Products (2); Plastic Resin (2); Polypropylene (3); Steel – Cold Rolled; and Steel – Hot Rolled (2).

Commodities Down in Price
Corn; Stainless Steel Surcharges; Steel (5); Sugar (4); and Sulfuric Acid.

Commodities in Short Supply
No commodities are listed in short supply.

Note: The number of consecutive months the commodity is listed is indicated after each item.

 

To view the press release in its entirety, click here


Published Date : 9/3/2013

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