January Manufacturing ISM Report On Business Reports the Manufacturing Sector Expanded In January for the 20th Consecutive Month

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 January for the 20th consecutive month, and the overall economy grew for the 68th consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business.

Manufacturing expanded in January as the PMI registered 53.5 percent, a decrease of 1.6 percentage points when compared to December's reading of 55.1 percent, indicating growth in manufacturing for the 20th consecutive month.

ISM's New Orders Index registered 52.9 percent in January, a decrease of 4.9 percentage points when compared to the December seasonally adjusted reading of 57.8 percent, indicating growth in new orders for the 20th consecutive month.

ISM's Production Index registered 56.5 percent in January, which is a decrease of 1.2 percentage points when compared to the seasonally adjusted 57.7 percent reported in December, indicating growth in production for the 11th consecutive month.

ISM's Employment Index registered 54.1 percent in January, which is a decrease of 1.9 percentage points when compared to the seasonally adjusted 56 percent reported in December. This is the 19th consecutive month of growth in employment.

The delivery performance of suppliers to manufacturing organizations slowed in January at a slower rate as the Supplier Deliveries Index registered 52.9 percent. This month's reading is 5.7 percentage points lower than the seasonally adjusted 58.6 percent reported in December.

The Inventories Index registered 51 percent in January, which is 5.5 percentage points higher than the 45.5 percent registered in December, indicating raw materials inventories are growing following one month of inventories contracting.

ISM's Backlog of Orders Index registered 46 percent in January, which is 6.5 percentage points lower than the 52.5 percent reported in December, indicating contraction in order backlogs following three months of growth in order backlogs. Of the 87 percent of respondents who reported their backlog of orders, 18 percent reported greater backlogs, 26 percent reported smaller backlogs, and 56 percent reported no change from December.

Of the 18 manufacturing industries, 14 are reporting growth in January in the following order: Primary Metals; Wood Products; Printing & Related Support Activities; Miscellaneous Manufacturing; Fabricated Metal Products; Electrical Equipment, Appliances & Components; Petroleum & Coal Products; Paper Products; Transportation Equipment; Chemical Products; Machinery; Food, Beverage & Tobacco Products; Computer & Electronic Products; and Furniture & Related Products. The two industries reporting contraction in January are: Textile Mills; and Nonmetallic Mineral Products.

Keywords: Automation, Manufacturing, Process Industries, Discrete Industries, Supply Management, PMI, ISM, ARC Advisory Group.