PMI at 55.4%; May Manufacturing ISM Report On Business
Institute for Supply Management
(Tempe, Arizona) — Economic activity in the manufacturing sector expanded in May for the 12th consecutive month, and the overall economy grew for the 60th 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 May PMI® registered 55.4† percent, an increase of 0.5 percentage point from April’s reading of 54.9 percent, indicating expansion in manufacturing for the 12th consecutive month. The New Orders Index registered 56.9† percent, an increase of 1.8 percentage points from the 55.1 percent reading in April, indicating growth in new orders for the 12th consecutive month. The Production Index registered 61.0† percent, 5.3 percentage points above the April reading of 55.7 percent. Employment grew for the 11th consecutive month, registering 52.8† percent, a decrease of 1.9 percentage points below April’s reading of 54.7 percent. The Supplier Deliveries Index registered 53.2† percent, 2.7 percentage points below the April reading of 55.9 percent. Comments from the panel reflect generally steady growth, but note some areas of concern regarding raw materials pricing and supply tightness and shortages.”
Of the 18 manufacturing industries, 17 are reporting growth in May in the following order: Furniture & Related Products; Electrical Equipment, Appliances & Components; Primary Metals; Fabricated Metal Products; Nonmetallic Mineral Products; Machinery; Transportation Equipment; Chemical Products; Paper Products; Computer & Electronic Products; Petroleum & Coal Products; Apparel, Leather & Allied Products; Printing & Related Support Activities; Food, Beverage & Tobacco Products; Wood Products; Miscellaneous Manufacturing; and Plastics & Rubber Products. No industry reported contraction in May.
WHAT RESPONDENTS ARE SAYING …
- “Increasing demand for product is creating supply and sourcing challenges.” (Food, Beverage & Tobacco Products)
- “Steel bars required for automotive applications are in high demand. Supply is very tight and prices are increasing.” (Fabricated Metal Products)
- “Aviation is recovering and outlook is optimistic.” (Transportation Equipment)
- “The improving gas prices are positively impacting our short term drilling plans.” (Petroleum & Coal Products)
- “Political issues in Russia are not yet impacting our supply of raw materials from Russian suppliers.” (Computer & Electronic Products)
- “Volumes picking up in some sectors, but profitability still elusive. Suppliers indicate similar difficulties in getting price increases.” (Chemical Products)
- “Business has remained steady. However, this month has a more subdued disposition by comparison.
Price escalation has leveled off with even a few decreases on selected items.” (Wood Products)
- “Semiconductor, oil & gas are very busy.” (Electrical Equipment, Appliances & Components)
- “Business slightly up as anticipated; holding.” (Machinery)
- “Defense industry contracts are shrinking, customer is exercising minimum options, or less than minimum.” (Miscellaneous Manufacturing)
MANUFACTURING AT A GLANCE
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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 report in its entirety, click here.
Published Date : 6/3/2014