The Manufacturing ISM Report On Business is published monthly by the Institute for Supply Management (ISM), the largest supply management organization in the world, as well as one of the most respected. Economic activity in the manufacturing sector expanded in December, and the overall economy grew for the 116th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business.
Manufacturing expanded in December, as the PMI registered 54.1 percent, a decrease of 5.2 percentage points from the November reading of 59.3 percent. This indicates growth in manufacturing for the 28th consecutive month.
ISM ’s New Orders Index registered 51.1 percent in December, which is a decrease of 11 percentage points when compared to the 62.1 percent reported for November, indicating growth in new orders for the 36th consecutive month.
ISM ’s Production Index registered 54.3 percent in December, which is a decrease of 6.3 percentage points when compared to the 60.6 percent reported for November, indicating growth in production for the 28th consecutive month.
ISM ’s Employment Index registered 56.2 percent in December, a decrease of 2.2 percentage points when compared to the November reading of 58.4 percent. This indicates growth in employment in December for the 27th consecutive month.
The delivery performance of suppliers to manufacturing organizations slowed in December, as the Supplier Deliveries Index registered 57.5 percent. This is 5 percentage points lower than the 62.5 percent reported for November. This is the 27th straight month of slowing supplier deliveries.
The Inventories Index registered 51.2 percent in December, a decrease of 1.7 percentage points from the 52.9 percent reported for November. Inventories expanded for the 12th consecutive month, but at a slower rate than the prior month.
The ISM Prices Index registered 54.9 percent in December, a decrease of 5.8 percentage points from the November reading of 60.7 percent, indicating an increase in raw materials prices for the 34th consecutive month.
ISM ’s Backlog of Orders Index registered 50 percent in December, which is 6.4 percentage points lower than the 56.4 percent reported in November, indicating order backlogs were unchanged for the month.
Of the 18 manufacturing industries, 11 reported growth in December, in the following order: Textile Mills; Apparel, Leather & Allied Products; Machinery; Transportation Equipment; Computer & Electronic Products; Wood Products; Chemical Products; Food, Beverage & Tobacco Products; Miscellaneous Manufacturing; Electrical Equipment, Appliances & Components; and Primary Metals. The six industries reporting contraction in December — in the following order — are: Printing & Related Support Activities; Fabricated Metal Products; Nonmetallic Mineral Products; Petroleum & Coal Products; Paper Products; and Plastics & Rubber Products.