Markit U.S. Manufacturing Purchasing Managers Index (PMI)
Markit is a financial information services organization that produces various indices, including the U.S. Manufacturing Purchasing Managers Index (PMI). This particular index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. SME reviews this monthly report to gauge the manufacturing industry’s productivity.
Resiliency for Our Economy
August 1, 2016
July’s Markit U.S. Manufacturing Purchasing Manager’s Index (PMI) jumped from 51.3 in June to 52.9, a healthy improvement over the post crisis low of 50.7 recorded in May.
“Resiliency is manufacturing’s unofficial motto,” Jeff Krause, CEO, SME, said. “It’s an industry focused on long-term growth and performance, and showed that with July’s improvements in output, new orders and export sales.”
July saw advances in both domestic and external market demand – with the latter experiencing its fastest pace of growth since September 2014. Production, new business, unfinished business and payroll numbers continued their growth in July, boosting manufacturing’s opportunity to lift the United States’ sluggish economy in the third quarter.
New Business and Export Growth Fuels Optimism Among Manufacturers
July 1, 2016
June saw manufacturing’s highest outlook in three months according to the Markit U.S. Manufacturing Purchasing Managers’ Index. Jumping from 50.7 in May to 51.3 in June, the seasonally adjusted index indicated slight growth in manufacturing output – driven by new business and export sales.
“We’re seeing expanded opportunity within manufacturing,” SME Chief Executive Officer Jeff Krause said. “Hiring continues and new order, as well as export, growth has manufacturers optimistic about future prospects, despite recent uncertainty overseas.”
Mixed Reports Ignore Long-term Business Optimism
June 1, 2016
Today’s Markit U.S. Manufacturing
Purchasing Managers Index proclaims the weakest manufacturing in over
six-and-a-half years, with only a passing mention of manufacturers’
continuing faith in the long-term business outlook despite short-term
uncertainty. Momentum, according to the report, declined to 50.7 in May
from 50.8 in April. Though, while outputs slowed and new business growth
was modest, payroll numbers and the rate of job growth both saw
increases – attributed to new products and long-term optimism.
On these topics, SME Chief Executive
Officer Jeff Krause explains: “With the impact of the recession still
fresh in our minds, it’s easy to view short-term slowdowns as overly
bleak. However, with wages and salaries in manufacturing growing nearly
three times as much as those in the entire workforce, it’s clear to see
that manufacturers continue to see long-term growth and opportunity.”
Manufacturing wages and salaries,
according to the Bureau of Economic Analysis’ Personal Income and
Outlays announcement, hit $836 billion in April – growing nearly 1.1
percent month-over-month. Indicative of positive long-term outlooks
among employers that is mostly lacking from Markit’s narrative.
Is Manufacturing Stable … or Contracting?
May 3, 2016
Markit Economics issued its composite U.S. Manufacturing Purchasing Managers Index (PMI) yesterday. The index slipped one point to 50.8 for April but still represents some growth – contraction is represented by any monthly index falling below 50.
The following manufacturing insight can be attributed to SME Chief Executive Officer Jeff Krause: “With a composite measurement taking into account several variables, it’s useful to view performance over the past several months for context: April’s PMI of 50.8 represents a second month of progress in contrast to industry contractions last fall and winter. Manufacturers are facing challenges – but this is evidence of stability.”