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April 2014 ISM Report on Business

 

New orders, employment and production growing; Inventories growing; Supplier deliveries slowing

 

PRESS RELEASE
Institute for Supply Management


(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in April for the 11th consecutive month, and the overall economy grew for the 59th 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® (ISM®) Manufacturing Business Survey Committee. "The April PMI® registered 54.9 percent, an increase of 1.2 percentage points from March's reading of 53.7 percent, indicating expansion in manufacturing for the 11th consecutive month. The New Orders Index registered 55.1 percent, equal to the reading in March, indicating growth in new orders for the 11th consecutive month. The Production Index registered 55.7 percent, slightly below the March reading of 55.9 percent. Employment grew for the 10th consecutive month, registering 54.7 percent, an increase of 3.6 percentage points over March's reading of 51.1 percent. Comments from the panel generally remain positive; however, some expressed concern about international economic and political issues potentially impacting demand."

Of the 18 manufacturing industries, 17 are reporting growth in April in the following order: Apparel, Leather & Allied Products; Primary Metals; Furniture & Related Products; Miscellaneous Manufacturing; Food, Beverage & Tobacco Products; Transportation Equipment; Fabricated Metal Products; Machinery; Printing & Related Support Activities; Plastics & Rubber Products; Textile Mills; Chemical Products; Computer & Electronic Products; Wood Products; Paper Products; Petroleum & Coal Products; and Electrical Equipment, Appliances & Components. The only industry reporting contraction in April is Nonmetallic Mineral Products.


WHAT RESPONDENTS ARE SAYING ...   

  • "Business is strong and continues to grow in my industry." (Textile Mills)
  • "Winter weather has slowed order intake but not inquiries. We think there is pent-up demand waiting for the weather to break." (Fabricated Metal Products)
  • "U.S. remains stable, Asia is increasing in sales dramatically and Europe remains soft." (Transportation Equipment)
  • "Overall business is up. Hiring is also up. Skilled trades in short supply." (Transportation Equipment)
  • "Slight improvement in defense spending and manufacturing." (Computer & Electronic Products)
  • "Export demand picking up but seems to have no leverage to raise prices. Margins are very thin, and concerned about Chinese slowdown effect on our business." (Chemical Products)
  • "China returned from their New Year holiday with brisk demand. Domestic markets are also doing well." (Wood Products)
  • "Softening in bookings, shipments at same level." (Electrical Equipment, Appliances & Components)
  • "Spring of 2014 is 3 to 4 percent better than Spring of 2013 for our company." (Machinery)
  • "Russia may stop importing medical devices manufactured completely outside of Russia. Would have big negative impact — 5 to10 percent lost revenue." (Miscellaneous Manufacturing)

 

MANUFACTURING AT A GLANCE

APRIL 2014

 
Index   Series Index
April
Series Index
March
% Point Change   Direction   Rate of Change   Trend* (Months)  
PMI™ 54.9 53.7 +1.2 Growing Faster         11
New Orders 55.1 55.1 0.0 Growing Same 11
Production    55.7     55.9 -0.2 Growing Slower 2
Employment 54.7 51.1 +3.6 Growing Faster 10
Supplier Deliveries 55.9 54.0 +1.9 Slowing Faster 11
Inventories 53.0 52.5 +0.5 Growing Faster 3
Customers’ Inventories 42.0 42.0 0.0 Too Low Same 29
Prices 56.5 59.0 -2.5 Increasing Slower 9
Backlog 55.5 57.5 -2.0 Growing Slower 3
Exports 57.0 55.5 +1.5 Growing Faster 17
Imports 58.0 54.5 +3.5 Growing Faster 15
Overall Economy Growing Faster 59
Manufacturing Sector Growing Faster

11

 

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

*Number of months moving in current direction.

 

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


Published Date : 5/8/2014

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