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Manufacturing Expands for 8th Straight Month in January


January Manufacturing ISM Report On Business®--PMI® at 51.3%; New Orders, Production and Employment Growing, Inventories Contracting, Supplier Deliveries Slowing

 

PRESS RELEASE
Institute for Supply Management


(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in January for the eighth consecutive month, and the overall economy grew for the 56th 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 January PMI® registered 51.3 percent, a decrease of 5.2 percentage points from December’s seasonally adjusted reading of 56.5 percent. The New Orders Index registered 51.2 percent, a significant decrease of 13.2 percentage points from December’s seasonally adjusted reading of 64.4 percent. The Production Index registered 54.8 percent, a decrease of 6.9 percentage points compared to December’s seasonally adjusted reading of 61.7 percent. Inventories of raw materials decreased by 3 percentage points to 44 percent, its lowest reading since December 2012 when the Inventories Index registered 43 percent. A number of comments from the panel cite adverse weather conditions as a factor negatively impacting their businesses in January, while others reflect optimism and increasing volumes in the early stages of 2014.”

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

WHAT RESPONDENTS ARE SAYING …

  •  “We are seeing slight improvements, year-over-year, month-to-month, across most regions and business segments.” (Apparel, Leather & Allied Products)
  •  “Poor weather impacted outbound and inbound shipments.” (Fabricated Metal Products)
  • “Good finish to 2013, but slow start to 2014, mostly attributed to weather.” (Petroleum & Coal Products)
  • “U.S. government aerospace business is very brisk.” (Transportation Equipment
  • “Slight improvements in defense business. But still lagging from previous years.” (Computer & Electronic Products)
  • “Cautiously optimistic about increasing volumes but still challenging, and margins remain low.” (Chemical Products)
  • “We have experienced many late deliveries during the past week due to the weather shutting down truck lines.” (Plastics & Rubber Products)
  • “We continue to be busy, working six days, 24 hours a day.” (Primary Metals)
  • “Restricted optimism heading into Q1.” (Machinery)
  • “Delays in government product certification due to the partial government shutdown last year are still negatively impacting delivery and inventory levels.” (Miscellaneous Manufacturing)

MANUFACTURING AT A GLANCE

JANUARY 2014

 
Index   Series Index
Dec
 
Series Index
Nov
 
% Point Change   Direction   Rate of Change   Trend* (Months)  
PMI™ 51.0 56.5 -5.2 Growing Slower          8
New Orders 51.2 64.4 -13.2 Growing Slower 8
Production 54.8 61.7 -6.9 Growing Slower 17
Employment 52.3 55.8 -3.5 Growing Slower 7
Supplier Deliveries 54.3 53.7 +0.6 Slowing Faster 8
Inventories 44.0 47.0 -3.0 Contracting Faster 2
Customers’ Inventories 44.0 47.5 -3.5 Too Low Faster 26
Prices 60.5 53.5 +7.0 Increasing Faster 6
Backlog 48.0 51.5 -3.5 Contracting From Growing 1
Exports 54.5 55.0 -0.5 Growing Slower 14
Imports 53.5 55.0 -1.5 Growing Slower 12
Overall Economy Growing Slower 56
Manufacturing Sector Growing Slower 8

Manufacturing ISM Report On Business®data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries. 

*Number of months moving in current direction 

Indexes reflect newly released seasonal adjustment factors.

 

COMMODITIES REPORTED UP/DOWN IN PRICE and IN SHORT SUPPLY

Commodities Up in Price
Copper; Electrical Components; Natural Gas; Plastic Resins (2); Polypropylene Resins; Stainless Steel (2); Steel (2); Steel — Hot Rolled (3); and Wood (3).

Commodities Down in Price
Caustic Soda is the only commodity reported in short supply.

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

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


To read the press release in its entirety, click here.


Published Date : 2/3/2014

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